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Part One
INTRODUCTION

1. Background
Internships provide an excellent way to determine if the industry and the profession
sought or thought over is the best career option to pursue. It provides real world
experience to those looking to explore or gain the relevant knowledge and skills required
to enter into a particular career field. It is relatively short term in nature with the primary
focus on getting some on the job training. It helps the individuals (interns) to combine
theory with practical work experience. It presents a golden opportunity to build PR that
is invaluable in developing and maintaining a strong professional network in any field.
Internships also provide opportunities to experiment and pursue careers that match
academic and personal interests. The benefits of internship are numerous. It helps the
students to stimulate new interest in academic course work and frequently develop an
interdisciplinary perspective. It also helps to gain an increased awareness of skills,
attributes, personal qualities and values .Besides these, the benefits to completing an
internship include the development of strong teamwork skills balanced with the exercise
of individual responsibility, the opportunity to experiment with jobs that match academic
and personal interests, the chance to develop industry-specific abilities etc. It helps
students become viable and experienced job applicants when seeking employment after
graduation.
Everest Bank Limited (EBL) started its operations in 1994 with a view and objective of
extending professionalized and efficient banking services to various segments of the
society. The bank is providing customer-friendly services through its Branch Network.
1. Goal/Objectives of Internship
The objective of the internship course is to enhance understanding of academic material
by application in the internship setting and test the interests in a particular career before
making permanent commitments. Internships provide with real time working experience
and help acquire practical knowledge.
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However, my personal goal from this internship program was to learn as much as
possible about the operations of banking system as a whole. Apart from this, I aimed at
improving my communication, leadership and decision making skills and learning to
maintain good interpersonal relations for personal development .The objectives of
internship at Everest Bank Limited can be highlighted as follows:
To get acquainted with the working environment and processes of a commercial
bank:
Banking industry has been an attractive and growing sector since past. Banks play an
important role in the economy of any country and thus are an integral sector to be
explored and analysed.The internship program was a means to help fulfill the objective of
understanding the work processes and environment of the bank.

To gain practical experience in regard to the theoretical knowledge:
The theoretical knowledge about banks and financial institutions has been instilled in the
academic course since long. However, I wanted to understand the operations and
functioning of the bank practically which was possible only after getting in the work
premises of the bank.

To acquire professionalism and experience the work culture for future:
The right attitude of professionalism is to be adopted for pursuing career in any field. It is
very important to learn how to deal with the clients in a professional manner. It would be
impossible to learn such skills without actually entering into the field and the internship
program provided an opportunity for the same.

To develop better communication and interpersonal skills for personal
development:
In todays competitive age, it is very important to develop good communication,
teamwork skills, networking relationships etc. The internship program was a good
platform for personal development.
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2. Roles/Jobs Performed in the Internship
During the internship program, I was placed in Customer Service Department, Clearing
department and Trade and Finance Unit (LC Department. The roles/jobs of the interns in
these departments are discussed below.
Customer Service Department:
In the CSD, the interns were assigned the following duties:
Explaining the customers about different deposit schemes and other services of the
provided by the bank.
Taking care of all the queries of the customer.
Providing Opening and closing accounts forms and checking the filled forms.
Issuing debit cards
Collecting the cheques for clearance and record them in the register manually.
Printing and issuing cheques books to the customers after recording their name,
account number and verifying their signature.
Balance Query using banking software regarding the transfer of the cash in the
accounts and the amount that could be withdrawn instantly.
Clearing Department:
The various jobs that were performed in the clearing department are as follows:
Collecting cheques from customer service department for entry in the system.
Checking details of cheques in transaction sheet for inward clearing procedure so that
amount and cheques number matches with the attached sheet.
Writing Vouchers for returned cheques to the various banks.
Making calls to customers to collect returned cheques with the vouchers and
informing them about the cheques that could not be send for clearance.
Recording details of cheques that had been dishonored by Nepal Rastra Bank and
returned to Everest Bank.
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Trade and Finance Unit:
Under TFSU, I was placed in the LC Department for specialization. The jobs performed
under this department are discussed below.
Providing Forms of Letter of Credit to customers and informing them about the
documents required while opening LC.
Checking the received documents from the party who has submitted the documents
for opening the LC.
Sending fax of the LC copy to the Treasury Department of head office for other
processes.
Recording documents received from beneficiarys bank with airway bill and other
relevant documents in the register manually.
Filling the Bi.Bi.Ni.4 form which is given to the customer for the purpose of
submission to the Custom Office while releasing goods.
Writing the cheques of Nepal Rastra Bank on behalf of the customer which has to be
sent to the custom office for releasing goods.
Recording the copy returned from Custom Office which is the evidence for releasing
goods to the customers in the register manually and then filing it to the settled files.
3. Roles/Jobs of Intern Supervisor:
The internship was conducted in Everest Bank, Baneshwar Branch. The main objective
was to learn as much as possible about banking and thus rotation in various departments
was preferred. In the process, Customer Service Department, Clearing Department and
LC Department were explored. However, the specialization was done in LC department
and the major responsibilities of intern supervisor, Milina Joshi, officer of LC
Department can be explained as follows:
Ensure NRB circular, Operational Manual and other Policies of the Banks are
complied with while executing the transactions.
Ensure all the documents, Transmitted copy of LC/ amendment/ export LC are
advised to the customers on time.
Ensure any issues are reported, escalated to all the members of TFSU.
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Responsible and accountable for all issues with respect to trade transactions from
all the branches of the Bank.
Arrange to dispatch the copy of transmitted LC/ amendment, advices on the
following working day within 11.00 am to all respective branches.
In case of import bills received under the import LC, ensure that the same be
checked and forwarded to respective branches within two working days after the
receipt of the same.
For any urgent transactions (on an exceptional basis), ensure the same be
processed on the priority basis.
Apart from this, the intern supervisor was also responsible for:
Supervise the day-to-day operational functions of the department.
Promote teamwork and cooperation to achieve branch goals.
Ensure compliance with policies and procedures and obtains necessary approvals
and authorizations.
Monitor staff performance and handles daily/monthly reporting.
Assist with daily proof and provides second signature as required by tellers.

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Part Two
INTRODUCTION TO INDUSTRY AND COMPANY

1. Introduction to Industry
History of Banking in Nepal:
The inauguration of Nepal Bank Limited on Kartik 30, 1994 Bikram Sambat by
His Majesty King Tribhuvan marked the beginning of an era of formal banking in Nepal.
Until then all monetary tractions were carried out by private dealers and trading center.
In that era, very few understood or had confidence in this new concept of formal banking
and thus rising equity shares were not easy and mobilization of deposits was more
difficult. This became evident when the bank floated equity shares worth NRs. 2,500,000,
but was successful only in raising NRs.842, 000. The absence of bank in Nepal was
hampering the economic progress of the and causing inconvenience to the people. The
objective of fulfilling the citizens' need by providing service the law of the country
promulgated for the establishment of the Bank and its operation. From the very
conception and its creation, Nepal Bank Ltd, was as joint venture between the
government and the private sector. There were only 10 shareholders when the bank first
started.
Table 1 :History of Banking in Nepal
Time Event
Nov 15, 1937 Nepal Bank Limited (NBL) was established on Kartik 30, 1994 BS
and This marked the beginning of an era of formal banking in Nepal.
1956 The Nepal Rastra Bank the central bank of Nepal was established.
Jul 1984 The Institutional Promoter i.e. Nabil Bank Limited, the first foreign
joint venture bank of Nepal was established
Jan 2000 Nepal Rastra Bank, the central bank of Nepal, initiated the process of
financial reform programme immediately after the announcement of
the budget for the fiscal year 2000/01.
Nov 2002 According to the World Bank, as of November 2002, Nepal also had
48 finance corporations, 13 insurance companies, numerous finance
institutions, 7 Grameen Replicator Banks, 35 financial cooperatives,
and 25 financial NGOs.
Jun 2005 The Non Performing Loan (NPL) of most of the banks and finance
companies decreased in the fourth quarter of the fiscal year 2005.
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2. Introduction to Everest Bank
The Everest Bank Limited (EBL), started as a joint venture (JV) between India's Punjab
National Bank (PNB) and Nepalese entrepreneurs 17 years ago, is considered one of the
leading private banks of Nepal. PNB holds 20 percent of the equity in EBL and its
officials manage the Nepalese JV under a technical services agreement. It started its
operations in 1994 with a view of providing resourceful and efficient banking services to
various segments of the society. EBL has 37 branches all over Nepal which are
connected through Anywhere Branch Banking System (ABBS). EBL was one of the first
banks to introduce Any Branch Banking System (ABBS) in Nepal.
The bank is striving to improve customer service quality, fulfill their needs through
extended services. The bank although focuses on particular arena for its further
development and growth , it is equally considerable for its overall performance to sustain
in the Nepali market. The bank has launched its own remittance package Everest Remit
with an aim to help Nepalese citizens working abroad in countries like UAE, Kuwait,
Bahrain, Qatar, Saudi Arabia, Malaysia, and Singapore. K. etc. Similarly, instant
remittance facility to and from India has also been put into operation by setting up
representative offices at New Delhi (India).The representative offices in India has also
been set up with a view facilitate the opening of account of Nepalese residing an working
in India.
For proving complete banking solutions, EBL has introduced retail lending schemes such
as Home Loan, Education Loan, EBL Flexi Loan, EBL Property Plus (Future Lease
Rental), Home Equity Loan, Vehicle Loan, Loan Against Share, Loan Against Life
Insurance Policy and Loan for Professionals.
The bank has endeavored to position itself as technology savvy, for adjoining the
customers requirement for customized service and is the first bank that has launched e-
ticketing system in Nepal. It has also introduced branchless banking system for the first
time in Nepal to cover unbanked sector of Nepalese society.
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a. Corporate Vision & Mission
Vision
To evolve & position the bank as a progressive, cost effective & customer
friendly institution providing comprehensive financial and related services.
To integrate the frontiers of technology & serving the various segments of
society.
To be committed to excellence in corporate values.
Mission
To provide excellent professional services & improve its position as a leader in
the field of financial related services.
To build & maintain a team of motivated and committed workforce with high
work ethos.
To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.
b. Organizational Strategies
EBL focuses on the following strategies:
Continuous review and upgrading of technology:EBL has procured world class
computer software finacle . It has been increasing its own ATMs and encouraging
its customers for using EBL Debit Card. It has also introduced E- banking and
SMS banking. Apart from this, it is providing e-ticketing facilities for some
selected airlines.
Expansion and Development of New Market: EBL envisions growth by
entering and developing new market segments. During the year 2066/67 it has
opened five more branches namely Tulsipur, Maitidevi, Thamel, Tatopani and
Kalimati.
Human Resource Development: The bank has been imparting employees
training in various aspects of banking for the development of its human resources.
It has been working to instill a sense of belongingness among its employees.
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Profitability: The bank has been experiencing consistent profits since the last
five years. In order to sustain profitably in Nepalese Banking industry , the bank
has made strategies for improvement in average yield on interest bearing assets,
increasing the average spread, keeping the non-performing loans at lowest level
etc.
Apart from this, the future strategic plan of the bank incorporates:
Improving internal control system.
Increasing customer base by upgrading information technology initiatives in low
cost deposits with a view to reduce average cost of deposits.
Increasing average yield on advances by aggressive marketing of retail lending
schemes.
Recruiting ideally suitable manpower and providing various training facilities to
them for improvement in their knowledge, skills and efficiency.

c. Major Products of the Company:
EBL has been providing a great range of services to its customers . The major products
and services of the product can be diagrammatically represented as :

Figure 1: Products and services of Everest Bank Limited

Deposit
Current Deposit
Saving Account
Saving Premium Account
Fixed Deposit Account
Unfixed Fixed Deposit Scheme
Cumulative Deposit Scheme
Nari Bachat Khata
Bal Bachat Khata
USD Account etc

Loans
Retail Loan
Corporate Loan
Remmitance
Inward Remmitance
Outward
Remmitance
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Deposit :
EBL provides the service of deposit account that allows money to b deposited and
withdrawn by the account holder. Maintaining deposit account in EBL provides a number
of facilities including free cheque books, free monthly statements , unlimited withdrawal,
extended banking hour ,365 days banking etc.
Loan:
Retail loan: Under retail lending, the various loans offered by EBL are Home Loan,
Home Equity Loan, Vehicle Loan, Education Loan, Professional Loan, and Loan against
mortgage, Loan against Future Lease and Rental, Loan against shares etc.
Corporate Loan: The corporate loan consists of working capital finance (assessing current
assets and liabilities), project finance (assessing projects rate of return, repayment ability,
cash flow and generation of cash surplus), trade finance (facilitate domestic and
international transaction)and consortium finance (financial closure of large projects).
Remittance (Inward remittance and outward remittance):
EBL is playing a pivotal role in facilitating remittance to and from across globe for
Nepalese residing in U.A.E, Bahrain, Kuwait, Qatar, Malaysia, Saudi Arabia etc. It has
also entered into agreements for instant money transfer with EZ Remit, Xpress Money
Transfer , Nepal Remit and Money gram.
The other products and services of the bank include:
EBL Debit Card: EBL Debit Card is key to ultimate convenience regarding day to day
monetary transactions providing the customers the power of real cash in form of card. It
facilitates wide sharing of ATMs under SCT network from more than 650 Locations
throughout Nepal.
E-Banking and SMS Banking :EBL provides a wide range of services in the form of e-
banking which are as follows:

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-Account summary/ Statements
-Balance Inquiry
-Fund Transfers
-Bill Payments (Currently UTL Bill)
-Offline Requests (Cheque books, remittance etc)
-Various Alerts (Email/SMS)

d. Organizational Structure:
The organizational structure has been clearly defined in EBL which can be evidenced
from the figure below:
Figure 2: Organizational Structure
BOD,
CHAIRMAN
DGM
Corporate
Lending
DGM
Commercial
Lending
EXECUTIVE
DIRECTOR
AGM -
Operation

AGM -
Planning
Legal
Credit
International
Banking
Marketing
Personal
System and
Reconciliatio
n
Accounts
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EBLs organizational structure follows a certain hierarchy. It is evident from the figure
that EBL has a functional structure to promote efficiencies within that group. There are
Deputy General Managers (DGM), Assistant General Managers (AGM), executives,
officers, managers and other people working with each other in harmony and coordinated
way. However, it has been able to overcome one of the major drawbacks of functional
structure i.e. lack of communication between the functional groups since it is apparent
from the figure that DGM and AGM of the various departments co-ordinate to increase
efficiency of the bank.
3. Organizations general and competitive Environment
It has become very important to analyze the general and competitive environment of the
bank with the significant growth in the number of banks and financial institutions in the
recent years. For the same purpose , SWOT Analysis , PEST Analysis and Porters Five
Forces Analysis has been undertaken to examine EBLs environment and the impact of
external environment on EBL.
a. SWOT Analysis:

Figure 3 : SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. The basic purpose
behind SWOT analysis is to recognize these factors of EBL and to promote the strengths,
reduce the weakness, grab the opportunity and neutralize the threats for better
performance of the bank.
Strengths Weaknesses
Opportunities Threats
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Strengths:
Large number of branches :EBL has 37 branches all around the valley till date which is
commendable . The bank has opened five branches in the year 2066/67 namely Tulsipur,
Maitidevi, Thamel , Tatopani and Kalimati.
Innovative products and services: The major innovations from EBL in the last five
years can be termed as "Bank on Wheel" and "Branchless Banking". These facilities have
mainly targeted to facilitate rural people in banking with the help of sophisticated
technology.
Knowledgeable and skilful Human resource :EBL has been recruiting ideal manpower
to carry out the responsibilities of its banking system. It has not only been working for
the development of the employees but also on instilling a sense of belongingness for
raising the motivational level of the workforce.
Ability to work in adverse situations: The liquidity crisis prevailing in the banking
sector caused a lot of problems in the past financial year.EBL, however, managed to
follow prudent and balanced portfolio management in such circumstances. In fact, it
reported a reduction in its NPA from 0.48% to 0.16% i.e. a record in the whole banking
industry.
Weaknesses:
Lack of effective inter-branch communication: The various branches of EBL need to
work as a single team for the proper processing of the banking activities. However , it is
noted that , at times, there is a communication gap that eventually leads to poor
relationships with the existing customers.
Poor performance appraisal system: EBL lacks expertise in one of the fields and that is
proper performance appraisal system. The bank is not able to recognize the potential of
the employees which is important for putting the right person in the right job.
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Processing delays:EBL has been striving to make its banking system flawless, however,
it has not been successful in doing so. There are a number of complaints being filed
regarding its ATMs and document processing delays in the bank.
Opportunities:
Large customer base: The accessibility and credibility of the bank has helped to create a
large customer base for the bank . This has opened doors for a number of opportunities
for the bank to progress and move forward in today's competitive edge. After all, large
customer base helps to reduce average cost of deposits and maintain goodwill for future
businesses.
Technological innovation: EBL has procured banking software Finacle, increased its
ATMs , and introduced E- banking, SMS Banking, Branchless Banking etc. that has
resulted to opportunities of increasing number of customers .
Joint Venture with Punjab National Bank (PNB): The representative office in New
Delhi, India has presented a number of opportunities for growth of the banks business in
an international level. It facilitates the opening of account of Nepalese citizens working in
India and remitting their funds to our country through EBL.It also helps to attract
business relating to trade finance from India.
Prudent and balanced portfolio management :During the liquidity crisis , all banks in
the nation were going trough struggle to maintain their capital adequacy ratio, CD ratio
etc. EBLs management of balanced portfolio saved the bank from such hazards. Instead,
the bank reported a great reduction in its NPA.
Threats:
Political instability :Nepals political situation is vulnerable. The lack of stable
government and proper regulations hampers the banking sector of the country to a large
extent. It not only affects the profitability of the bank but also brings problems in
performing regular banking operations.
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Economic condition: The problem of currency shortage and liquidity crisis in the past
financial year has created unfavorable banking conditions. Such difficult circumstances
compel the banks to borrow at high rates of interest from NRB and also to face the
problem of inadequate capital adequacy.
Entry of new banks in the market :The number of banks and other financial institutions
has been increasing rapidly in the Nepalese economy. This has not only created threat of
competition to EBL but has also presented with a number of challenges to improve its
performance and introduce innovative products in the market.
b. PEST Analysis

Figure 4 : PEST Analysis
(Source: http://teeanthony.blogspot.com/)

These are the macro environmental factors that the company has to consider for
understanding potential and direction for operations. Each force is discussed below with
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special emphasis on its influence on the Nepalese banking industry as a whole and EBL
in particular.
Political-legal environment: The political environment of Nepal is very unstable. The
changes in government and regulations affect the performance of banks to a great extent.
The ongoing political standoff has thrust the country through unending labor strikes,
protests, shutdowns and bandhs.
The monetary authority has provided signals to reduce spread, control sectoral exposure ,
and maintain rate of interest on deposit at higher side etc.EBL has developed various
strategies to maintain the income level of bank as well as diversify risk.
Economic environment: Nepalese banking industry experienced economic problems
like currency shortage and liquidity crunch in the fiscal year 2066/67.Dturing this period,
many banks were forced to take loans from NRB at high interest rates to maintain CRR
ratio. The three largest banks in the country suffered from inadequate capital adequacy
i.e. below 10%. However, EBL managed to maintain sufficient capital adequacy ratio at
10.77%.The key factor for this achievement is continuous efforts made to keep the non-
performing loans at lowest level and reduction in NPA from 0.48% to 0.16%.
Socio-cultural environment: Socio- cultural environment is that part of the firm's
external marketing environment in which social or cultural changes affect the firm's
marketing effort. Consciousness about services and improved customer relation arise
because of change in socio-cultural environement.In the context of Nepal, it is seen
banking habit is more developed in urban areas and the amount of transaction is also very
huge in urban areas in comparison to rural areas.
EBLs retail lending schemes which were introduced as a part of management efforts to
cater to the needs of customers like Home Equity Loan, Flexi Loan , Advances against
Life Insurance policies etc. has gain much popularity in the urban sector of Nepal.
Technological environment: Banking has been made easier by the developments in
Information Technology and Communications field. EBL has been continuously
reviewing and upgrading its technology for the convenience of its customers. It has
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procured banking software Finacle , increased its number of ATMs, introduced E-
banking and SMS Banking and provided E-ticketing facility to be recognized as a
technology savvy in the banking industry.
c. Porters Five Forces Analysis:


Figure 5: Porter's Five Forces Analysis
Porters Five Forces Analysis helps to understand the dynamics of competition within an
industry. It helps to assess potential levels of profitability, opportunity and risk within an
industry. The forces that shape the overall industry and its profitability have been shown
in the diagram. These forces are never static and keep on changing, thus banks need to
review their strategies from time to time in the light of these forces which are described
below:
Degree of rivalry: Due to several new banks coming into the market, the degree of
rivalry among the commercial banks in the country is intense. The occurrence of
problems like currency shortage and liquidity crunch in the country has made the
situation more severe. EBL has approached innovative banking in the form of Bank on
Wheel and Branchless Banking for increasing its customer base with differentiated
products.
Degree
of
Rivalry
Threat of
Entry
Bargaining
Power of
Buyers
Threat of
Substitutes
Bargaining
Power of
Suppliers
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The intensity of rivalry is influenced in the banking sector by the following industry
characteristics:
Presence of large number of banks in a small market like Nepal
Low switching costs for the customers .
Low levels of product differentiation in the banking sector
Growth of banking industry in the last few years etc.
Difficulty in reducing spread , maintaining rate of interest on deposit at higher side,
maintaining capital adequacy ratio etc.

Threat of Substitutes: Banks encounter threat of substitutes like finance companies,
money-lenders, insurance companies, mutual-funds, co-operatives etc. The availability
and growth of such substitutes in the Nepalese economy has affected the banks ability to
charge premium prices to its customers. However, banks are still more reliable ,
convenient and credible financial institutions in the views of customers that provides
banks a competitive edge .
Buyers bargaining power: Consciousness about services and improved customer
relationship has resulted in the increased bargaining power of customers. The increased
number of banks and other financial institutions has provided a range of choices available
to the customers. The customers are demanding higher interest rates on deposits, lower
service and processing charges, quick loan processing and free services like ATM card,
ABBS etc. Banking knowledge and a range of options has led to the increased
bargaining power of customers.
Suppliers bargaining power: The bargaining power of banks as supplier of range of
financial services is in a decreasing pace. The main reason behind decreased bargaining
power of the banks is due to a number of banks and other financial institutions entering in
the Nepali market. Moreover, the lack of innovation in the banking industry has also
resulted to bargaining pressure from the customer's side rather than on the banks part. In
case of EBL, the interest rate on saving account is just 3% which is very less in
comparison to other banks.
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Threat of new entrants: The economic prosperity of banks in the last decade has
attracted a large number of banks and other financial institutions in the industry.
However, Nepal Rastra Bank (NRB) has issued directives defining the total paid up
capital of 2000 million and also that all existing commercial banks must increase their
paid up capital to NRs. 2 billion by 2010. In addition to this the directives related to
branch expansion is also likely to discourage entry of new players in the market. In the
current scenario , however , it is seen that many of the banks and financial institutions are
liquidated because of irregularities and ill practices by the BOD and employees of the
bank.












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Part Three
PRESENTATION OF MAJOR PROJECTS UNDERTAKEN

Project: Assessment of Introduction of LC Hub: Everest Bank Limited
Section I : Introduction
1. Introduction of the project
The globalization process of increasing the connectivity and interdependence of the
world's markets and businesses have led the companies to expand their businesses by
entering foreign markets. The international trade has become an integral part of the 21st
century. It is evident that the countries cannot live in isolation. The world economy is
interdependent and the nations have to undertake trade for their economic progress.
However, foreign trade involves various risks such as unfamiliarity with the foreign
country, customs, or political instability.
A commercial risk is always present both in export side as well as import side. The
financial risks related to the international trade can arise because of the inability of the
buyer to honor full payment of goods on due date , non-performance of the seller etc.It is
necessary for the companies with the international activities to evaluate the degree of risk
and choose an appropriate cover for the same. One such cover can be termed as
documentary credit or letter of credit.
The distances separating business partners and the amount involved in the context of
international commerce have made the creation of a specific instrument of payment
necessary which is entitled as letter of credit. It helps to reconcile the interests of the
exporter i.e. to get paid as well as those of the buyer - i.e.to receive the merchandise that
he has ordered in the quantity and quality that has been contracted for within the time
frame. More essentially, it provides for the security of payment that the exporter seeks.
The documentary letter of credit represents a bank's commitment to pay a specific sum to
the supplier of merchandise or of a service, against receipt of a specified list of
documents within an agreed time frame, which prove that the merchandise has been
expedited, or that services or benefits promised have been made good. The purpose of
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these documents is to provide a tangible basis of credibility for the proper execution of
the exporter's obligations. The bank will then transfer these documents to the purchaser
against reimbursement, so that he can take possession of the goods.
(http://www.eurport.com/anglais/apptheo/finance/risnp/credoca.html)
The use of documentary letters of credit thus allows the exporter to enjoy the benefit of
a formal undertaking on the part of a bank as well as gives an assurance to the importer
that the bank guarantees not to make the payment, unless the exporter has fulfilled the
terms of his own contract i.e. deliver the goods as mentioned in the sales contract within
the stipulated time.
2. Objectives of the project
The major objectives of the study are as follows:
To understand the impact of introduction of LC hub in Everest Bank Limited.
To explore the roles and responsibilities of different units after the centralization
of the LC process by the establishment of Trade Finance Services Unit (TFSU)
at corporate level in Everest Bank Limited.
To assess the increased effectiveness and efficiency of the bank after the
establishment of LC hub in the bank.
To understand the problems encountered by the bank after the introduction of LC
hub.
To learn about the functioning of LC process.
3. Scope and Limitations of the project:
Banking has a very extensive scope. It is very difficult to understand each and every
aspect of the bank in just eight weeks of internship. The scope of work is usually
confined due to the barriers due to the limited time and space constraints.
The project is limited to the observation and study within Everest Bank Limited apart
from the secondary research from various books, journals ,sites etc. Thus , the trends and
processes related to LC in Everest Bank Limited, Trade and Finance Services Unit have
been highlighted in the report.
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Moreover, the extent of the project is also limited only to the LC department since as an
intern I was assigned to take some of the responsibilities of the same department thus
keeping away from other sections of the bank.
Limitations
There are various limitations of the study:
The information gathered is limited to the accessibility of data within the bank.
Since the research is descriptive in nature , a limited number of tools have been
used.
The explanatory or analytical study is solely based upon my judgment and may
lack accuracy and expertise critics.
Since LC is a vast subject to be explored, all the aspects of the same have not
been explored detailly in the project.
The report does not highlight all the departments of the bank and is limited to the
exploration of LC department only.

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Section II : Conceptual Framework
1. Review of related literature
a. Meaning of letter of credit:
The English name letter of credit derives from the French word accreditation, a
power to do something, which in turn is derivative of the Latin word accreditivus,
meaning trust. This relates to any defense relating to the underlying contract of sale and
is exercised as long as the seller performs their duties that meet the requirements
contained in the letter of credit.
If you are exporting, one of the issues for consideration will be to how to collect
payment from your buyer. One option may be to ask the buyer to pre-pay for the goods.
Another option may be to sell on open account (i.e. to send an invoice to the buyer along
with the goods which requests payment of the purchase price. Between these extremes of
pre-payment and open account sales lies the option of a letter of credit.
A letter of credit is a contractual agreement between a bank, known as the issuing bank,
on behalf of one of its customers, authorizing another bank, known as the advising or
confirming bank, to make payment to the beneficiary. It is a document issued by a bank
in which the bank agrees to pay money upon the presentation of specified documents.
Using this device, a bank for all the intents and purpose will "step into the shoes" of the
buyer for the purpose of guaranteeing payment to the seller.
Letters of credit used in international transactions are governed by the International
Chamber of Commerce Uniform Customs and Practice for Documentary Credits.
b. Parties to the letter of credit:
There are many parties involved in the letter of credit. The parties involved in the letter of
credit are as follows:
Beneficiary: The beneficiary is an exporter/seller who exports/sells the goods to the
importer /buyer. The beneficiary is entitled to payment under the letter of credit as long
as he can provide the documentary evidence of his performance. After the beneficiary
(seller) conforms to the letter of credit, the seller must be paid by the bank.
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Issuing bank: The issuing banks is the bank whose role is to provide a guarantee to the
seller that if the documents presented are compliant with the terms and conditions set out
in the letter of credit, the bank will pay the seller the amount due.
Advising Bank: An advising bank is generally the beneficiary's local bank to insure that
the letter of credit is valid. The advising bank would be responsible for sending the
documents to the issuing bank. However, if the issuing bank does not pay the beneficiary,
the advising bank is not obligated to pay.
Conforming Bank: The confirming bank is the one that at the request of the issuing
bank, obligates itself to insure the payment under the letter of credit. The confirming
bank does not confirm the credit until it evaluates the country and bank where the letter
of credit originates. The confirming banks main risk is that once having paid the
beneficiary, it may not be able to obtain reimbursement from the issuing Bank in some
stances.
c. Types of Letter of Credit:
Irrevocable: An irrevocable letter of credit is the letter of credit that can neither be
amended nor cancelled without the agreement of all parties to the credit.
Unconfirmed: In unconfirmed letter of credit, the advising bank confirms its authenticity
but without adding its own undertaking to make payment or accept responsibility for
payment at a future date.
Confirmed: A confirmed letter of credit is one in which the advising bank, on the
instructions of the issuing bank, adds a confirmation that payment will be made as long
as the presented documents are in compliance with the terms and conditioned of LC. A
bank makes an additional charge for confirming a letter of credit
Standby Letters of Credit :A Standby Letter of Credit (calledSLC or LC ) are
written obligations of an issuing bank to pay a sum of money to a beneficiary on behalf
of the importer in case the the importer does not pay the exporter. The International
Chamber of Commerce publishes rules for operating standby letters of credit - ISP98
International Standby Practices.
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Revolving Letter of Credit :Revolving letters of credit are useful to avoid the need for
repetition of arrangements for opening or amending letters of credit. It is used in
situations where there are regular shipments of the same commodity to the same
importer. However, it must be stated that it is a revolving letter of credit and may revolve
either automatically or subject to certain provisions .
Transferable Letter of Credit: A transferable letter of credit is one in which the
exporter has the right to request the paying to make either partial or full payment of the
credit value available to one or more third parties. This type of credit is useful for those
acting as middlemen especially where there is a need to finance purchases from third
party suppliers.
Back-to-Back Letter of Credit :A back-to-back letter of credit is used as an alternative
to the transferable letter of credit. Generally, banks are reluctant to issue back-to-back
letters of credit due to the level of risk to which they are exposed.
Red Clause or Packing Credit: It is specific type of letter of credit in which a buyer
extends an unsecured loan to a seller. It is commonly used by beneficiaries who act as
purchasing agents for buyers in another country.
Green clause letter of credit: It is basically intended to finance the production or
purchase of the goods to be delivered under the letter of credit. In the case of a green
clause letter of credit with advance payment the beneficiary can request the advance
payment of an agreed amount from the correspondent bank.
d. Characteristics of Letter of Credit:
Negotiability: Letters of credit are usually negotiable i.e.it can be passed freely from one
party to another as money. However, to be negotiable, the letter of credit must include an
unconditional promise to pay, on demand or at a definite time as mentioned. Then the
nominated bank becomes a holder in due course. and takes the letter of credit for value, in
good faith. The transaction is considered a straight negotiation if the issuing bank's
payment obligation extends only to the beneficiary and is referenced as "we engage with
you" or "available with ourselves". Under straight negotiation the promise does not pass
to a purchaser of the draft as a holder in due course.
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Revocability: Letters of credit may be either revocable or irrevocable. A revocable letter
of credit may be revoked or modified for any reason, at any time by the issuing bank
without notification. However, once the documents have been presented and are in
compliance with the terms and conditions in the letter of credit, and the draft is honored,
the letter of credit cannot be revoked. If a letter of credit is revocable it would be
referenced on its face.
Transfer and Assignment: The letter of credit governed by the Uniform Commercial
Code (UCC) maybe transferred an unlimited number of times.However,under the
Uniform Customs Practice for Documentary Credits (UCPDC) the credit may be
transferred only once. In stances , where the letter of credit specifies that it is
nontransferable or non assignable, the beneficiary may transfer their rights prior to
performance of conditions of the credit.
Sight and Time Drafts: All letters of credit require the beneficiary to present a draft and
specified documents in order to receive payment. A sight draft is payable as soon as it is
presented for payment. The bank is allowed a reasonable time (generally 5 days) to
review the documents before making payment. A time draft is not payable until the lapse
of a particular time period stated on the draft. The issuing bank is obligated to accept
drafts and pay them at maturity.
e. Why Letters of Credit?
The buyer and seller have their own priorities of receiving the goods in the stipulated
quantity and quality first and receive the full payment for the goods to be supplied first
respectively. However, if mutual distrust occurs, the business transaction will not
continue. The banks play the facilitating role of the banking system for the buyer and the
seller, as both of them have full faith in the banking system and the bank(s) concerned.
The letter of credit does not only relieve the buyer and seller but also bring certain
benefits to the bank itself .
Benefits to the Banker:
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Increased Balances :The balances are the life-blood of every commercial bank. The
banks gain advantage by maintaining balances up to the line of credit so that the
drawings of the exporters are met under the credit.
Commission. The commissions charged by the banks on the letter of credit form a
significant part of earnings of the commercial banks.
New Business Opportunities. Through the letters of credit the banks develop profitable
relationships with the firms that are engaged in the export and import of merchandise.
Goodwill in the banking industry: If the issuing bank serves effectively and honors the
drafts promptly of the corresponding bank, it creates good impression of the credit
standing at the exporter's bank. The exporters bank, in turn, sends bulk of the business
to the bank which has given better services.
Advantages of Letter of Credit to the exporter:
Provision of finance. The exporter undertaking the letter of credit can obtain necessary
finance on the production of shipping documents.
Credit standing. The exporter can establish his credit standing both on the part of the
importer and the buyer s bank by proper delivery of the merchandise and the shipping
documents through the letter of credit.
Legal right. The export letter of credit establishes legal right of getting payment of the
goods to the exporter.
Advantages of Letter of Credit to the importer.
Risk covered. The importer by opening a letter of credit in favor of seller is prevented
from the risk of making payments before the receipt of goods. The importer will make
payment to a bank in his own country against shipping of delivery documents.
Business expansion. The letter of credit greatly facilitates overseas business and makes
the payments of goods easy.
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Payment in documents currency: The importer pays for the goods received in the
currency of his own country and the exporter also gets the payment by the advising bank
in the currency of his own country.
f. Letter of Credit process:


Figure 6 :Letter of Credit Process
(Source : http://www.bocusa.com/portal)

The step-by step process of LC has been explained below:
The buyer and seller agree to conduct business and the seller wants a letter of
credit to guarantee payment.
Buyer applies to his bank for a letter of credit in favor of the seller.
Buyer's bank approves the credit risk of the buyer, issues and forwards the credit
to the advising bank advising
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Advising bank authenticates the credit and forward the original credit to the
seller
The seller (beneficiary) ships the goods and develops the documentary
requirements to support the letter of credit.
Then , the seller presents the required documents to the advising bank to be
processed for payment.
Advising bank forwards the documents to the issuing bank.
The issuing bank examines the documents for compliance with the terms and
conditions of LC. If the documents are compliant, the issuing bank debits the
buyer's account.
Issuing bank then forwards the documents to the buyer and collects the payment.
Risks involved in the letter of Credit.
Since all the parties involved in the letter of Credit deal with the documents and
not with the goods, the risk of exporter not shipping the goods as mentioned in
LC still persists.
The Letter of Credit as a payment method is costlier than other methods of
payment.
The beneficiarys documents must comply with the terms and conditions of the
Letter of Credit for issuing Bank to make the payment.
The beneficiary is exposed to the commercial risk on issuing bank(in case of
insolvency or non-payment), political risk on the issuing banks country and
foreign exchange risk in case of usance Letter of Credits.
g. Documents in LC :
The most common documents that must be presented to the bank for payment of the
goods on behalf of its customer that must precisely conform to the terms and conditions
of letter of credit are as follows:
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Commercial Invoice: It is the document required at custom point for assessment of
duties and taxes by determining the true value of the imported goods. It includes a
description of merchandise (quantity, weight and volume of shipment), price, name and
address of buyer and seller, date and terms of sale, country of origin etc.
Bill of Lading: A bill of lading (B/L) is a issued by a carrier to a shipper evidencing the
receipt of goods for shipment to the named place of delivery. It includes name of the
shipping company, shipper's name, order and notify party, description of goods, Gross
and net weight, freight rate etc.
Packing list: Packing list is simply a document that itemizes the details of packaging and
notifies the content of the package . It informs transport agencies , government
authorities, importer etc. about the goods in the package to deal with the package
accordingly.
Insurance Certificate: An insurance certificate is a document issued by an insurance
company/broker to verify the existence of insurance coverage of LC goods being shipped
to the importers destination. It includes the effective date of the policy, the type of
insurance coverage purchased, name and address of the parties etc.
Certificate of origin: A Certificate of Origin (CO) is a document attesting that the goods
being exported are produced or manufactured or processed in a particular country
(country of origin). The document may be issued by the exporter or be confirmed by
another party in the exporting country, such as a notary, a chamber of commerce, or a
local consulate of the destination country.
Bill of exchange: A bill of exchange is a non-interest-bearing written order that binds
one party to pay a fixed sum of money to another party at a predetermined future date.
The above mentioned supporting documents for the payment are checked for
discrepancies with the help of checklist by the bank . The common discrepancies noted
between the letter of credit and supporting documents are as follows:
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Letter of Credit has expired prior to presentation of draft.
Bill of Lading not endorsed.
Stale dated documents.
Changes included in the invoice not authorized in the credit.
Inconsistent description of goods.
Insurance document errors.
Invoice amount not equal to draft amount.
Ports of loading and destination not as specified in the credit.
Description of merchandise is not as stated in credit.
A document required by the credit is not presented.
Documents are inconsistent as to general information such as volume, quality, etc.
Inco terms not as per LC terms.
Invoice or statement is not signed as stipulated in the letter of credit.

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Section III: Methodology
1. Methodology/procedure of project
The method used for the analysis and preparation of the project is exploratory in nature
The primary project is to assess the introduction of LC hub in Everest Bank Limited . The
secondary projects include: division of work responsibilities after the establishment of
TFSU at corporate level, positive effects of LC centralization and difficulties encountered
at introduction of LC hub.
Initially, the method of careful observation was implemented to understand the processes
of the bank. LC is a complex aspect of banking and thus specialization in LC was
followed by vigilant scrutinization in the first place. The files , documentation and all
study materials provided by the bank for understanding LC were thoroughly studied.
However, the project could not be analyzed by merely observing the processes and
documents. Thus , informal and formal talks with the hub members were initiated to have
deeper insight of the project. The increased efficiency and effectiveness of LC operations
could not be gauged without comparing the pervious and current scenario of LC
processing . So , the members were asked to provide their views on both the primary and
secondary projects undertaken for the completion of the report.
Apart, from this the customers level of satisfaction with the LC processing activities was
also monitored to better analyze the various aspects of the project.
The various sources of data are as follows:
Primary Data
Primary sources of data were mainly through interaction with the employees, manager
and customers. Information was also acquired through observation as well as on the job
training by spending laborious weeks in CSD , Clearing and LC hub.
The following sources of information helped in gathering qualitative and quantitative
data:




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1. Observation as an intern
Information regarding how the LC processing takes place , documents required in LC,
maintenance of records in files , supervision and coordination of the employees in the
process was gathered through observation. Likewise, the customers reaction after the
introduction of the hub in the bank was also monitored .The positive effects of LC
centralization could be observed over time in the hub with the reduction in processing
delays, cost effectiveness, increased customer satisfaction etc.

2. Interviews
Interviews carried out with Mrs. Milina Joshi, LC hub officer helped in understanding
the division of Credit Department in the bank and the function of each sub-department.
Interview with Mr. Roshan Dangol and Mr. Pankaj Pokharel in the LC hub helped in
acquiring knowledge about the foreign and local LC processes and documentation.The
frequent interactions with Mr., Abhishek Shrestha , one of the members of TFSU helped
in understanding the previous and current scenario of the LC processing activities. The
questionnaire prepared for the formal interviews with the LC hub employees has been
presented in Appendix.

Secondary data :
Likewise, the secondary data was gathered from the various articles and journals
provided by the bank for study purpose . The data was further accumulated from various
books, sites etc. for better understanding.

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Section IV: Presentation and Analysis of the projects undertaken:
1. Analytical presentation of the project:
a. LC centralization in EBL:
The LC process was not centralized in EBL until November , 2010 and thus the entire
processing from the receipt of application to making the payment was done by the
individual branches of the bank. However, the management of the Bank decided to
centralize the LC process by establishing a Trade Finance Services Unit (TFSU) at
Corporate level with a view to bring increased efficiency, uniformity, control, better MIS
and cost effectiveness in the bank. The bank came up with the decision to provide the
responsibility for executing, controlling and facilitating Letter of Credit related
transactions for all the branches of the Bank to the most qualified and accountable staff
having expertise in various areas of trade finance.
b. Division of work responsibilities after the establishment of TFSU at corporate
level:
For LC issuance
At Branch level:
Receive application.
Ensure that the application is completely and correctly filled in
Verify Signatures / company seal of the applicant.
Creates a Checklist of documents.
Fill up limit positions, margin, commissions, and charges on the sheet if the
proposed LC is within the limit.
Obtain approval from competent authority in case of LCs to be opened on ad-
hocs, specifics basis or limit expired cases. Also put approval date and authority
on the application page for ad-hocs, specifics or limit expired cases. This has to be
signed by two authorized signatories of the branch.
Put up contact person name, contact number, email and fax on the application for
TFSU use.
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Forward all the documents e.g. filled LC application, Bi Bi Ni Form 3, Signed
Pro-forma Invoice, BCI report etc,. through email as scanned copy or fax. The
original documents should dispatch through branch courier.
Deliver the LC copy and advice to the Customer upon receipt of the transmitted
copy of the same.
Thus , the activities of the branch were then made limited to the above mentioned actions.
The branches were no longer responsible for processing of LC.The entire responsibility
for processing was handed over to the central LC unit (TFSU).
At TFSU:
Update the branch wise record with time of receipt and other details.
Before the commencement of transaction processing, the Officer would check
the following details :
ensure that all outstanding are within the prescribed limit and that the current
account/OD balance is sufficient to cover the charges and margin required.
confirm the Cash margin ,commission and telex charge with the respective
branches before issuing the LC.
ensure that the application is filled up completely and all required information is
available and consistent throughout the documents.
confirm that all the documents as per NRB guidelines are in place.
ensure that the goods imported are in compliance with the Nepal Gazette and no
banned items are being imported. However, if such items are to be imported, then
the necessary approvals must be taken from the competitive authority e.g.
approval for the import of narcotics and psychotropic substances should be taken
from Department of Drugs Administration for import of narcotics and
psychotropic substances.
Prepare MT 700 L/C Message. Verify the L/C text for any errors and omissions
against the application. And take out the printouts.
Sends the L/C message to SWIFT department for transmission. On receipt of
transmitted copies, print out the same.
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Prepare Reimbursement Authority and take out the print outs (if required).
Provide LC numbers to the respective branches.
Dispatch the transmitted LC copy to branches and update the status on the branch-
wise checklist.
It can be seen from the above mentioned list of activities that after the introduction of LC
hub , the more accountability is resided with the hub.
For LC Cancellation:
At Branch Level:
Receive request.
Verify the applicants signature.
Forward the request to TFSU for further processing.
At TFSU:
Upon receipt of the request , update the branch wise record with time of receipt
and other details.
Sent a SWIFT request to advising seeking Beneficiarys consent to cancel the LC
Debit Customers account to recover the charges.
Similarly, after the centralization, the processing activities for trust receipt or importers
loan disbursement & payment would also be altered and take place in the following ways:
For trust receipt or importers loan disbursement:
At Branch Level:
Receive TR Application from the customer
Verify signature(s) in the request letter as well as the indemnity.
Forward TR Request or deed / Payment Instruction to TFSU.
Upon receipt of the advices handover the same to customer.

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At TFSU :
Check T/R request form being filled properly or not i.e. T/R amount, Invoice
Amount, signed by authorized signatory.
Check the availability of TR limit
Calculate the right percentage, interest to be applied and validity of loan to be
disbursed as per the customer approved facility sheet prepared by the branch.
Input the transaction in the system. Have the transaction authorized. Generate
advices.
For payment :
AT TFSU:
All the documents under Import LC shall be received by TFSU.
Upon receipt of documents, TFSU will send a non negotiable set of document to
the branch without checking the document along with the covering intimation
letter for delivery to the customer.
Then,TFSU will check the documents. If there is any discrepancy, the same will
be intimated to respective Branch/customer by e-mail/fax with instruction to the
customer to inform of acceptance/non-acceptance to at email/fax of TFSU
TFSU will also advise the discrepancy (s) to negotiating / collecting bank.
In case of clean documents TFSU will make payment of document as per the
instruction of the negotiating / remitting bank.
In case sufficient balance is not available for settlement, will intimate to branch
In case of discrepant documents, the document shall be paid only upon receipt of
acceptance of the same from the applicant
TFSU will forward the paid documents to respective branches along with required
custom and other documents for release like endorsed document and Bi. Bi. Ni.
Form No. 4 along with NRB cheque.

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At Branch Level:
After receiving the e-mail\Fax from TFSU regarding discrepancies, the branch
shall inform the customer and obtain customers request for payment.
Upon receipt of paid documents, inform customer and handover the same to them
with their acknowledgement.
Forward the receipt copy to Head Office for record.
It is evident after the analysis of the process and work activities division among the
branches and TFSU that the aim with which the management decided to centralize LC
has been fulfilled.
2. Major Findings :
1. LC is a complex process requiring a lot of expertise and competence to fulfill the
necessary bank operations. The LC process involves a lot of risks and thus it is
essential to manage the process carefully by assigning the accountable people
who are knowledgeable about the various aspects of trade finance.
2. The decision to introduce LC hub in Everest Bank Limited has proved to be
correct and beneficial for the overall excellency of the bank . The introduction of
hub has helped to increase the efficiency and effectiveness of the LC process in
the bank. It has also caused the bank to face some deficiencies and problems
while the introduction of LC centralization process. However, all in all , it can be
said that the introduction of TFSU has been a valuable decision for the bank and
is likely to bring positive results in the future as well.
3. The introduction of hub has affected many factors namely as: use of centralized
experts , economy, flexibility , duplication of work, accountability , job
satisfaction , decision- making time etc. The management had also initiated the
decision with the same view i.e. to bring increased efficiency, uniformity, control,
better MIS and cost effectiveness in the bank. Thus , we can say that the
management's expectations from the LC centralization process have been met
accordingly.
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4. It is evident that there are pros and cons of bringing a change in the status
quo. Similarly, the introduction of the hub did not only help to increase the
efficiency and effectiveness but also caused the bank to encounter some
problems during the introduction. The work pressure among the hub
members increased drastically since they had to maintain all the LC files
both inside and outside the valley. Likewise, the inadequacy of manpower
and space constraints also heightened the work pressure in the staffs .

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3.5 Section V :Conclusion :

EBL has taken the right decision of centralizing the LC process and has been able to
fulfill the aim with which it had initiated the introduction of LC hub. This can be
regarded as one of the improvements in EBL that will help the bank to sustain and
maintain its goodwill in the market in present cut-throat competition scenario. It has not
only helped to increase efficiency and effectiveness of the bank but also has made the
bank seem more accountable and concerned towards its customers.
The management has made a great move with the introduction of TFSU at corporate
level. However, there are still some areas of improvement regarding the centralization
process where the management can still provide input and get better results. LC hub has
to maintain a number of inside and outside the valley LC files and thus the physical
infrastructure needs to be enhanced i.e. the number of cabinets have to be increased.
Likewise, LC hub has a lot of responsibilities and jobs to be accomplished. The present
employed members in the department seem to be finding difficult to do their work with
integrity and accuracy on time. Thus, the management should also think about hiring
more personnel for the department. Nevertheless, the management has been concerned
about this issue and hired a new staff to look after the local LC recently.




41

Part IV
REFLECTION OF INTERNSHIP

1. Reflection:
The internship program has been designed to provide an opportunity to the students to get
acquainted with the practical work situations and put their theoretical knowledge into use.
The internship course is carried out so that the students get an overall idea about the work
settings of the organization they opt for.
The internship period of eight weeks at EBL has helped me to know a lot about the
banking processes. I specialized in the LC Department with a view to understand the
complexities of international trade and the bank's role in facilitating the same. The staffs
at EBL were very co-operative and helped me learn as much as possible about LC and
other operations of the bank within the limited time period. The eight weeks placement
time at EBL has helped me gain knowledge about the LC processes, documentation
required, risks associated with LC and the rules and procedures dictated by UCP 600 and
Nepal directives. It also helped me to enhance communication and negotiation skills by
getting a chance to interact with the customers directly.
The knowledge and experience gained from the internship program will help me to
pursue my career in the banking field. However, specialization in LC has also opened
doors for business opportunities for me since I have gained thorough knowledge about
LC which is essential to start up with the international trade.
More importantly, the internship has helped to build networks with bank employees and
managers which will be a tremendous help while searching for a job.






42

References:
Annual Report :Everest Bank Limited , Nepal . Retrieved from
http://www.everestbankltd.com/financials/annual_report.html
Home : Everest Bank Limited , Nepal. Retrieved from
http://www.everestbankltd.com/index.html
Credit Research Foundation : Understanding and Using Letters of Credit , Part I,
Retrieved from http://www.crfonline.org/orc/cro/cro-9-1.html

International Chamber of Commerce (2007 Revision) : Uniform Customs & Practices
for Documentary Credits (UCPDC).ICC Publication no. 600

Malhotra, N. K. (2007). Marketing Research - An Applied Orientation. New Delhi:
Dorling Kindersley (India) Pvt. Ltd.

International Trade Finance : Letters of Credit and Collections ,Salient Features and
Provisions of International Standby Practices-ISP98.ICC.Publication no. 590
McLaughlin G.T (2000) "Credit in History: Lewis and Clark," National Law Journal
McLaughlin G.T & Turner P.S. (1997) "Letters of Credit Facilitate International Sales,"
Los Angeles Daily Journal
http://www.investorwords.com/2774/letter_of_credit.html

http://www.scribd.com/doc/3980255/12-letter-of-credit

http://www.ec-finance.com/site/about_lcs/letter_of_credit_process.html


.

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