CHAPTER -I

INTRODUCTION

1.1 Background
Bachelor in Business Administration in Banking and Insurance (BBABI) program
was introduced in Pokhara University; BBABI is a four years program consisting of
eight semesters aiming to provide required mix of theory plus practical courses.
Besides; it has been growing as one of the demanding course of study that holds
several job opportunities. It aims at creating socially accountable, resourceful and
result oriented professionals as per demand of growing business scenario.

In BBABI course, every student should go through the eight weeks long internship in
any industry relating to their specialized subject in order to practically imply
theoretical knowledge in the real work place. Internship in BBABI is conducted for
the partial fulfillment of academic requirement of BBABI sixth semester. It provides
practical exposure and helps the students to understand corporate social responsibility,
develop corporate attitude and venture entrepreneurship. This is a great opportunity
for internee to know about the banking industry that has worked as a building block
for career development in this financial service sector.

As the topic is about the Customer Service Department of Nepal SBI Bank Limited,
this project report is basically focused on the services provided, tasks and other
general activities, which are done at the Customer Service Department.

1.2 Objectives
Every action is directed towards accomplishing certain objectives. Internship program
is in itself a new learning pedagogy, which provides the floor for the practical
exposure of theoretical knowledge. The general objective of the study is to understand
the banking organization, its structure, working procedures and risk associated with it.
However, the specific objectives of the study are:
1

To know the basic activities and operations of CSD (Customer Service

Department).

To understand the working procedure of Cash Department.

To know how to deal with customers.

To understand the working procedure of Remittance Department.

1.3 Methodology
1.3.1

Organization Selection

Selection of organization for internship program is always a crucial task. As intern

program provides an opportunity to learn about the organization and get better
understanding and a more balance view of organization.

At the present scenario,

among different fields related with the financial sector one of the major field is the
banking sector. Being the student of BBA, the internee has selected the banking sector
as destination, because banks are the key players in the financial market. Since the
specialization was done in Banking and Finance, the sample chosen was Nepal SBI
Bank Limited. The internship period was started after a regular follow up.
1.3.2

Placement

In NSBL, throughout my internship period, I was placed in Gaushala Branch.

Customer service department (CSD) was my main placement in NSBL. It was under
the supervision of MS. Asmita Nepal (Operation In Charge). Actually working in
other departments was not allowed but the chance to know about the operation of cash
and remittance department was allowed for last two weeks.
Table 1: Placement Table
Departments/ Weeks 1

Customer Service
Cash
Remittance
1.3.3

Duration of Internship

The duration of the internship period as declared by the Pokhara University is six to
eight weeks for the partial fulfillment of the degree of Bachelor in Business
Administration in Banking and Insurance (BBABI). I worked in NSBL Gaushala from
30 of 30of August to 20 of September from 10:00am to 5:00pm.

Table 2: Details of internship at NSBL

Address

Gaushala, Kathmandu

Working Hour

10:00 Am To 5:00 Pm

Starting Week

19th May 2013

Ending Week

19th July 2013

Working Duration

8 Weeks

Internship Supervisors

Ms. Asmita Nepal

Working Departments

Customer Service Department (6 weeks)

Remittance Department (1 week)
Cash Department (1 week)

1.3.4

Sources of Data

Data for this report were gathered from both primary and secondary source of
information collected through the period of internship.
Primary Source of Data

Observation of working environment.

Direct interface with the walk-in customers.

Formal and informal communications with the official persons.

Secondary Source of Data

Quarterly reports of NSBL.

Internet surfing.
3

Publications and journals.

Newspapers, bulletin and booklets.

1.4 Activities Performed

Intern was assigned to perform the banks day to day activities in regular working
hours and spend eight weeks. The actual work done by the internee during the intern
period can be demonstrated as below:
Table 3: List of activities performed
Departments
CSD

Performed Tasks

Dealing with regular and new customers of the bank.

Advise customers about NSBL Banks products and

services and respond their queries.

Providing different kinds of forms to customer such as

Account opening form, Account closing form, Debit card
application form, Internet banking form, SMS banking
form, etc.

Collecting necessary documents and checking forms of

the customers required for account opening procedures.

Filing application forms and writing different application

on behalf of customers on the request of customers.

Keeping record of the account opened, account closed,

transfer of the account, customer taking additional
facilities such as Internet banking, SMS banking, etc.

Providing ATM cards to the cardholders.

Providing the balance statement and balance certificate

to the demanding customers after verifying the account
holder signature.

Recording the ATM card holder information in the

register after arrival of ATM card and pin number and
4

providing them to the respective customer after checking

the form filled to get card and verifying the signature.

Preparation of cheque books, recording the information

and providing it to the respective customer after
verifying the signature.

Making entry of void cheques, loss cheques, issuance of

cheques, etc.

Photocopies of citizenship cards, passports, license and

other documents of the customer required for recording
of customer service department.

Remittance

Handling the telephone calls.

KYC follow up

Made payment to the customers receiving money from

various parts of the world through RTGS, SWIFT and
Prabhu Money Transfer.

Cash

Recording and filing of RTGS, SWIFT and DD entries.

Helped customers to fill up various kinds of forms.

Cash sorting

Sorting for ATM

Informing the client in case of cheque return.

Returning the rejected cheque to the respective clients

and maintain proper records.

Returning the rejected cheque to the respective clients

and maintain proper records

Handling queries of the customer regarding their cheques

sent for clearing.

1.5 Limitations
This study has been conducted with certain limitations. Some of them are pinpointed
as follows:

Due to lack of time, study of each and every activities of the bank in depth was
not possible.

Due to privacy policy maintained in an organization, unavailability of information

created a problem.

It does not give the detail view of the overall functioning of the bank.

As the internship period was during the closing of the fiscal year, the banks staff
had excess workload due to which they couldnt supervise the interne properly.

Being a student lack of technical knowledge in the respective field was another
factor which limits the report.

CHAPTER TWO
INTRODUCTION OF THE BANKING INDUSTRY

2.1 Banking Industry at a glance

A bank is an institution, which deals in money, receiving it on deposit from
customers; honoring customers drawing against such deposits on demand, collecting
checks for customers and lending or investing surplus deposits until they are required
for repayment. In the past, the bank used to just accept deposits from the savers of
money and give loans to the users of the money. Modern banks and their banking
process are more advanced than the ancient ones. In these days, it performs a wide
variety of functions. It is an agent of its clients, which remits money, provides
services like LC, guarantee etc. and collects incomes, commissions and pays expenses
on the behalf of them.
Some Definitions
Banks are financial institutions that fund in the form of deposits, repayable on demand
or in short notice.
- World Bank
Bank is a financial institution, which provides financial services that may be in the
form of accepting deposits, advancing loan, providing necessary technical advices,
dealing overt foreign currencies, remitting funds, etc.
Nepal Rastra Bank Act 2002

2.2 Classifications of Banks

When a single bank performs multiple tasks, the efficiency and the effectiveness of
work becomes weak. Hence different banks are established for different purposes.
Basically, the banks have been categorized in various types in accordance with the
banks ultimate purpose, customers demands and choices, and overall economic
development of nation. Broadly, the banks can be classified into following types:
7

Central Bank

Commercial Bank

Industrial Bank

Agricultural Development Bank

Rural Development Bank

Saving Bank

Exchange Bank

2.3 Development of Banking Industry in Nepal

The history of banking in Nepal is believed to be started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. he introduced many financial and economic
reforms. The Tejaratha Adda was established at that time and its basic purpose was to
provide credit facilities to the general public with low interest rate. The Tejarath Adda
disbursed credit to the people on the basis of collateral of gold and silver. Tejaratha
Adda extended credit only; it did not accept deposits from the public.
The real banking started with the establishment of Nepal Bank Limited in 1994 B.S
which was founded by Judda Samsher. It was the first bank of Nepal. Its main
function was to provide loans and accept deposits. With the development of the
banking sector and to help the government, formulate monetary policies, Nepal Rastra
Bank was set up in Baisakh 14 2013 B.S.as the central bank of the country. However,
as the Central Bank, Nepal Rastra Bank had its own limitations and as a commercial
Bank, it was not logical for Nepal Bank Ltd. to go to unprofitable sectors. So to catch
up with these problems, the government established Rastriya Banijya Bank in 2022
B.S (1965 A.D), as a fully state owned commercial bank with full government
ownership. Then the establishment of Nepal Industrial Development Corporation
(NIDC), Employee Provided Fund, Agricultural Development Bank etc. followed the
formation of financial institutions.
In the context of banking development, the 1980s saw a major structural change in
financial sector policies, regulations and institutional developments. Government
emphasized the role of the private sector for the investment in the financial sector.
With the adoption of the financial sector liberalization by the government in 80's
opened the door for foreign Banks to open Joint venture Banks in Nepal. As a result
8

various banking and non-banking financial institutions have come into existence.
Nabil Bank Limited, the first foreign joint venture bank of Nepal, started operations in
July 1984 .With the passage of time several other joint venture bank has been
established such as Indosuez Bank Limited (Nepal Investment Bank) in 2042 B.S.,
Nepal Grind lays Bank (Standard Chartered Bank) in 2043 B.S., Himalayan Bank
Limited in 2049 B.S., Nepal SBI Bank Ltd in 2050 B.S and so on. During two
decades, Nepal witnessed tremendous increment in number of financial institutions.
Nepalese banking system has now a wide geographic reach and institutional
diversification.

2.4 Present Scenario of Nepalese Financial Institution

Financial institutions are the organization that channelizes the savings of government,
businesses and individual into loans and investment. Nepals financial system is
composed of depository and non-depository institutions. Depository institutions are
the banking institution that accepts deposits of the public and provide loan to them
whereas non-depository institutions are the financial intermediary who does not
accept the deposit directly from the customers. They are investment banks, insurance
companies, pension funds, etc.
Liberalization in opening of banking and financial institution led to mushrooming of
banking & financial institutions in Nepal. Along with commercial bank, the
government allowed to open development banks, finance companies with the
objective to increase people's access to financial institution. Permission for opening of
Banks and financial institutions however have been executed with little research on
requirement, viability level of these institutions and capacity of regulating agency to
monitor these institutions. The activities like opening of branches at rural setting,
developing entrepreneurs and thereby increment in employment opportunities,
productivity level and earning of the country did not occur as expected. NRB realized
the situation and international donors helping Nepal to improve its economy
suggested for the merging of bank and financial institutions to make few but strong
institutions. Nepal Rastra Bank introduced the Merger Bylaws on April 2011. Since
then 43 financial institutions have merged so far and more are in the process of
merging.
9

Bank and financial institution established and licensed without long term planning has
started to fold back after the World Bank and IMF guided the Nepal Rastra Bank to
reduce the numbers of financial institution. They suggested making few but stronger
institutions than many weak institutions. Nepal Rastra Bank developed policies and
guided banks and financial institutions to strengthen their position. Nepal Rastra Bank
has asked the banks and financial institutions with the same promoters to merge The
policy adopted by the Nepal Rastra Bank has started to pay back with the increase in
the numbers of bank and financial institution for merger. Some important mergers so
far are the followings:

Global Bank, IME Finance & Lord Buddha Finance company merged together
and is in operation as Global IME Bank.

NIC Bank and Bank of Asia merged together to operate as a strong

commercial bank.

Machapuchchre Bank and Standard Finance merged to establish a better

equity based Machapuchchre Bank.

Vibor Bikash Bank & Bhajuratna Saving & Finance Company merged and is
in operation as Vibor Bank.

Uddham Bikash Bank and Pashupati Development Bank merged and

formed Axis Development Bank.

Kasthamandap Development Bank and Sikhar Finance merged and operating

as Kasthamandap Development Bank.

Himchuli Bikash bank and Birgunj Finance merged and became H & B
Development Bank.

Growth and development of financial institutions in Nepal is reflected in table below:

10

Table 4: Growth of Financial Institutions

Types of

2010

2011

2012

2013

27

31

32

31

79

87

88

88

79

79

69

78

18

21

24

21

Financial
Institutions
Commercial
Banks
Development
Banks
Finance
Companies
Micro-finance
Development
Banks
Source: www.nrb.org.np

2.5 Commercial Banks

A commercial bank is a business organisation, which deals in money by lending and
borrowing money, in which it makes profit. It raises its resources through borrowing
from the public in the form of deposit and lends this to business firm. Its lending rate
of interest is greater than its deposit rate. This difference in lending and borrowing
rates enables it to make profit. Basic source of funds for commercial banks are capital
and reserved retained profit. It performs several functions.

Primary Functions:
Acceptance of Deposits:

Currents deposits (demand deposits)

Savings deposits

Fixed deposits

Recurring deposit

Miscellaneous deposits

Granting loans and advances:

Loans (Credit facility for more than 1 year)

11

Demand loan

Term loan

Education Loan

Advances (Short-term financial assistance)

-

Cash Credit

Bank Overdraft

Discounting of Bill

Trust receipt loan

Secondary Functions
Issuing letters of credit, travelers' checks, circular notes etc.
Undertaking safe custody of valuables, important documents, and
securities by providing safe deposit lockers.
Providing customers with facilities of foreign exchange.
Transferring money from one place to another and from one branch to
another branch of the bank.
Standing guarantee on behalf of its customers, for making payments
for purchase of goods, machinery, vehicles etc.
Collecting and supplying business information.
Issuing demand drafts and pay orders and
Providing reports on the credit worthiness of customers

2.6 Commercial Banks in Nepal

Commercial banks are the A class institution in Nepal. The history of financial system
of Nepal was begun in 1937 with the establishment of the Nepal Bank Ltd. as the first
commercial bank of Nepal with the joint ownership of government and general
public. Nepal Rastra Bank was established after 19 years since the establishment of
the first commercial bank. A decade after the establishment of NRB, Rastriya Banijya
Bank, a commercial bank under the ownership of Government Nepal was established.
Till the date, there are thirty one commercial banks in Nepal (see annex1).
Banking industry has stood as the most vulnerable yet most profitable sector in the
economy in the Nepalese context. Even with the increasing downturn in the nation,
this sector has yet been prospering with much lesser difficulty. Commercial Bank has
12

gained paramount trust in the public. With the wide reach and wide diversity of
services, it has become one of the most important sectors of our economy. Its
contribution is remarkable in the financial intermediation, creation of capital, fund
transfer, boosting of trade, employment etc. The banking sector has experienced high
level of growth in the past decade. The growth has been experienced in almost all the
aspects of the commercial bank sector increasing in number of banks, increase in
deposit portfolio, increase in loan portfolio, increase in service provision etc. with the
increasing number of services and the demand for those services, we can infer that the
banking sector has enough potential to exploit the opportunities and contributing in
the development of the country.
Majorities of bank and financial institution are city centered and are having cut throat
competition. Banks are therefore, looking to develop innovative products and services
to maintain superior customer services levels while same time remaining profitable.
The most obvious effect of the rising competition can be seen in the interest rates
offered by the banks. . Most banks are embracing E banking and provision of ATMs
to reduce long queue in banking hall. In addition, some banks have launched mobile
phone banking services which facilities several account query tools, including account
balances, thereby minimizing the need for customers to visit banks. This drive
towards IT based solution will continue to gather momentum in the future as banks
will find it very difficult to survive in the ever growing competition without some
form of competitive advantages. The scope of a bank in context of Nepal still has
many areas to expand. Areas like Full fledged Internet banking, Online Stock trading,
Agency services, Technological services, advisory services, Easy Money Transfer are
the ones that banks can still work upon and broaden their service portfolio.

13

CHAPTER THREE
INTRODUCTION OF NEPAL SBI BANK LIMITED

3.1 Introduction
Nepal SBI Bank Ltd (NSBL).is one of the leading commercial bank in Nepal
established in 1993 as a subsidiary of State Bank of India. It is the first IndoNepal joint venture in the financial sector sponsored by three institutional promoters,
namely State Bank of India(SBI), Employees Provident Fund and Agricultural
Development Bank of Nepal through a Memorandum of Understanding signed on 17
July 1992. NSBL was incorporated as Public Limited Company at the Office of the
Company Registrar on 28 April 1993 under Regn. No. 17-049/50 with an Authorized
Capital of Rs.12 Crores and was licensed by Nepal Rastra Bank on 6 July 1993 under
license No. NRB/l.Pa./7/2049/50. Nepal Rastra Bank granted fresh license to NSBL
classifying it as an "A" class licensed institution on 26 April 2006 under license No.
NRB/I.Pra.Ka.7/062/63.
Nepal SBI Bank Ltd. is a subsidiary of State Bank of India which has 55 percent of
ownership and rest is held by Employee Provident Fund (15%) and general public
(30%). In terms of the Technical Services Agreement between SBI and the NSBL, the
former provides management support to the bank through its expatriate officers
including Managing Director who is also the CEO of the Bank. Central Management
Committee consisting of the Managing Director, Chief Operating Officer, Chief
Financial Officer and Chief Credit Officer oversee the overall banking operations in
the Bank. The Bank was established in July 1993 & is now having 538 Nepalese
employees working in 50 branches, 6 extension counters, 2 Regional Offices & the
Corporate Office.
NSBL was awarded with Best Commercial Bank Boss top 10 business excellence
award in 2008-09.

14

3.2. Equity Structure of NSBL

The capital structure of Nepal SBI Bank has been briefly summarized in the table
below:
Table 5: Equity Structure of NSBL
Equity

In billion(Rs)

Authorized Capital

Issued Capital

2.1

Paid Up Capital

2.09

Fig 1: Pie chart of Equity Structure

In Billion (Rs)
Issued
Capital 2.1

Authorised
capital 3

Paid up
Capital 2.09

Source: Annual report of NSBL

15

3.3 Ownership Structure of NSBL

Table 6: Ownership Structure of NSBL

Owner

Proportion

of

(%)
State Bank Of India

55

General Public

30

Employees Provident Fund

15

Fig 2: Pie chart of Ownership Structure

Employees
Provident
Fund, 15%

Ownership Structure

General
Public, 30%

State Bank
Of India,
55%

Source: NSBLs official website

16

Wealth

3.4 Organizational Structure of NSBL

The organization structure of NSBL is designed to enable the organization to run
smoothly as well as to ensure transparency and integrity in communication and to
make available full, accurate and clear information flow to all concerned.
Fig 3: Organizational Structure of NSBL

Board of
Directors

Credit

Chief Credit
Officer

Managing

Chief Finanacial
Officer

Audit

Chief Operating
Officer

Company
Secretary

Credit Appraisal
& Sanction

Treasury and
Forex
Department

Accounts and
Administration
Department

Share
Department

Documetn
Follow up and
NPA Department

Reconcialiation
Department

Human
Resources
Depatment

Law Department

Business
Development
Department

System
Department

Branch Control &

Inspection

Regional Offices

Western Regional offices

Eastern Regional Offices

Source: Annual Report of NSBL

17

Internal Audit
Department

3.5 Products and Services of NSBL

Through a widespread branch network in almost all major cities, towns and sub-urban
areas, NSBL aims to provide customers with a wide array of offerings catering to all
the banking needs. The following are the major products and services offered by
Nepal SBI bank to its customers through its nationwide branches and varied agents:
3.5.1 Deposit and Account
The Nepal SBI bank accepts deposits from its customers through four major types of
accounts to accumulate funds from the dispersed general public. The types of
accounts are:

Saving account

Current account

Call Account

Fixed Deposit Account

NSBL provides various account schemes namely:

Saral Bachat Khata: It is one of the most popular deposit account products of
the bank targeted towards mid to low income group of people with lowered
minimum balance requirement.

Ujjwal Bhavisya Bachat Yojana: This is a recurring account which allows

customers to deposit a sum of money periodically up to a desirable term. This
product is especially useful for promoting savings and to use the fund received
at maturity to fulfill personal needs that call for significant financial
commitment.

Varistha Nagarik Bachat: Targeted at individuals of age 50 years and above,

this product provides customers with added benefits including higher rate of
interest.

Karmachari Bachat Khata: This account was launched with special focus on
groups of salaried employees from government and non-government
organizations.

Shareholders Account: Respecting the interests of the shareholders, the bank

has off ered to all its public shareholders, accounts with no minimum balance

18

requirement. They can also receive the dividends and other payments by the
bank in the same account

.
3.5.2

Loans and Advances

Corporate and Business Loans: The bank offers loans to large corporate and
institutional customers including public sector entities to meet funding
requirements from service related to strategic expansions, project finance etc.

Convenient Loan: This is a loan product designed to meet the needs of Small
and Medium Sized Enterprises in a very convenient manner to the
borrowers.

Mortgage and Mortgage Plus: Both represent personal credits given to

individuals purely on the basis of their income level.

Other Retail Loans: Retails loans largely comprise of auto finance, home loan
and credit for consumer durables.

3.5.3

Remittance

The major remittance services provided by Nepal SBI bank are in the form of SWIFT
transfer, Demand draft, Telegraphic Transfer etc. Following are the types of
remittance services offered to public:

Nepal SBI Remit: This is an online inward international remittance service

which offers a formal channel for Nepali community residing abroad to send
money to Nepal.

Domestic Remittance Service: Bank started domestic remittance service in

partnership with Prabhu Money Transfer. This product allows customers to
send and receive money to and from any part within the country.

SBI Nepal Express Remit: Nepali migrant workers residing and working in
India can remit money at minimal charges from more than 15,000 branches of
State Bank of India located in various parts of India. We are now receiving
more than 600 remittances on average per working day.

19

3.5.4

Card
Nepal SBI Card: This is ATM cum Debit card which can be used for cash
withdrawal as well as for purchases in more than 3,00,000 merchant outlets in
Nepal and India. card is the ordinary debit card provided to the saving
accountholders of NSBL. Customer can use these cards at any ATM terminal
of NSBL. It is VISA card. The name of the account holder is mentioned in the
card.

Bharat Yatra Card: Popularly known as BYC, this a Nepalese Rupees

denominated pre-paid card made for cash withdrawal and purchases while
visiting India. It is issued in international brand Visa Electronic Card. This
prepaid card can be instantly purchased from NSBL Branches and minimum
deposit balance of NRs 1,000 must be maintained to operate the card.

3.5.5

Other Services

The other services include the wide variety of services as shown below:

E-Banking: It facilitates the customer to view the account operation, transfer

money from one account to another account of NSBL. For this the customer
has to fill the e-banking form and after few days they will receive the pin and
can start using the service in NSBL website.

SMS Banking: It facilitates the customer to know their balance through SMS
in their mobile. In every deposit and its withdrawal message will come in their
cell phone..

Nepal SBI Mobile Wallet: Its a service which uses mobile phones to provide
access to financial services. This mobile wallet service system allows users to
store cash balances in their mobiles phones. Bank customers can transfer the
fund to the non account holders; make payment of utility bills and many more
using this service. They can deposit and make the withdrawals using mobile
phone. For this they have to open mobile account in NSBL and the secret code
will be provided to them after few days for using this service.

Safe Deposit Lockers: Looking at the varying needs and wants of the
customers, NSBL offers locker facilities of various sizes as per customers
preference and convenience of location. Customers availing of this facility
enjoy not only peace of mind in terms of security of their valuable belongings

20

but also one of the most attractive rates and ease of location. Bank will charge
some fee for providing the safe deposit locker facility.

Utility Bill Payment Services: The customers can directly pay the utility bill of
NTC Landline phones, UTL phones from the counters of Nepal SBI bank.

Extra Hours Banking Services: For the office working customers NSBL
provides evening counters in New-Road, Teku and Boudha Branches only for
accepting the deposits from 5:00pm to 7:00 pm every evening on working
days and from 12:00 noon to 2:30 pm on Saturdays.

Collection Service: NSBL provides the collection service to the policy holders
of Life Insurance Corporation (Nepal), students of St. Xaviers school,
Nursing Councils, Nepal Health Professionals Association, Mahatma Gandhi
Scholarship Program and Delhi Public School, Dharan.

3.6 Performance of NSBL

The performance of NSBL can be access through these comparisons:

Fig 4: Graphical Representation of Deposits, loans and Investment (Rs. in

Billion)
60
50
40
Deposits
30

Advances
Investment

20
10
0
2066-67

2067-68

21

2068-69

Fig 5: Graphical Representation of total income (Rs. in Billion)

Total Income
1.6
1.4
1.2
1
0.8

Total Income

0.6
0.4
0.2
0
2066-67

2067-68

2068-69

Fig 6: Graphical Representation of net profit (Rs. in Millions)

Net Profit
600
500
400
300

Net Profit

200
100
0
2066-67

2067-68

22

2068-69

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND
PROBLEMS SOLVED
During the eight weeks of internship in NSBL, the internee was assigned mainly in
Customer Service Department which helped internee to gain knowledge of that
department. Apart from CSD, the internee got chance to spend a week each in cash
and remittance department.
Customer service (also known as Client Service) is the provision of service to
customers before, during and after a purchase. Customer service is normally an
integral part of a companys customer value proposition. A customer service
representative 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. They need to answer customers questions, as
well as question them to obtain full understanding of what information is being
requested. They should try to fulfill the customers queries and problems on their own
and only refer complex issues to the management.

4.1 Activities Performed in CSD

The activities performed by the interne in the CSD of the NSBL, Gaushala branch are
all the activities the CSD officer there performs. The activities done are:
4.1.1

Customer Counseling

Customer counseling is most important functions of customer service department. The

efficiency of the customer service department or an organization is the outcome of the
quality of the customer counseling that it provides. There are various kinds of
products and services available in this organization. This department is also
responsible for providing detail information regarding these different products and
services.
Staffs in CSD should have information about the various products of the bank and
should have good communicating skills as to answer the queries of the customers
23

correctly, precisely and politely.

4.1.2 Account Opening
One of the major tasks performed in CSD desk is account opening. NSBL provides
various schemes to attract customer to open the account to collect deposits. To open a
new account the form should be filled up and all the required documents must be
attached. With the form, deposit slip should be filled according to the nature of the
account. Applicants are provided with free ATM card, SMS Banking, E-Banking
facility along with the account opening form to those who needs it.
Documents required for Account Opening
Documents are the essentials which acts as the proof for existence of any kind of
contracts made between organization and the customer or with any other parties. It
provides evidences for the identification of the customer. The CSD officer first has to
give a glance to the document provided by the customer before submitting it to the
concerned party. The basic requirements for opening different accounts are listed
below:

Personal Account
Completely filled up account opening form
Evidence of the identification of account operator ( citizenship card)
Passport size photograph of account operator as needed.
Introducers declaration
Utility bill

For Limited Liability Company/ Social Organization

Completely filled up account opening form
Board Resolution to open and operate the Account
Certificate of Registration/ incorporation
Articles of Association and Memorandum of Association
Income Tax Certificate (PAN Card)
Evidence of the identification of account operator ( citizenship card)
Passport size photograph of account operator
Introducers declaration
KYC form of account operator

24

For Proprietorship/ Partnership Firm

Completely filled up account opening form
Certificate of Registration/ incorporation
Income Tax Certificate (PAN Card)
Partnership deeds (in case of partnership firm)
Evidence of the identification of account operator ( citizenship card)
Passport size photograph of account operator and board of directors.
Introducers declaration
KYC form of account operator

Documentation for Organization

Articles and memorandum of association
Certificate of registration
Name list of the directors
Identification of the directors
Board minute for operating account
Delegation of authority for account operation
KYC form of directors and account operator

For Indian Nationals

Registration certificate as Indian nationals issued by embassy of India,
Kathmandu. (EOI Card)
Passport size photograph as needed.
Introducers declaration
Utility bill

Procedure to open the Account

Ask the customer to fill up the account opening form with signature
specimen card and deposit slip. Provide help if necessary.
Check if all the required documents are present, verify them with the
original ones and attest them.
The details of customer are entered into the bank software (i.e.
FINACLE) to get Customer Id and Account number by the concerned
authority.
The customer is asked to fill the deposit vouchers and deposit in cash
counter
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 Signature card with the signature and photograph are scanned for
future verification.
The verified and attested form are send to the OI for final approval.
The account opening form is filed on the basis of account number for
future reference.

4.1.3 Account Closing

Opening an account is a contract between the bank and the account holder while
closing the account is termination of the contract The account can be closed with
mutual

consent, with a notice by the account holder with or without assigning any

reason, with prior notice by the bank with valid reason and at the instruction of legal
authority.
During the internship period, the CSD officer recognized that customer here came to
close their Bharat Yatra Account and open the simple saving account because of
additional charges in operating. To close the account, a customer has to fill up the
form and return the check book and ATM/ Bharat Yatra card. They have to mention
the reason for closure of the account. NSBL charges certain closing charge while
closing the account.

Table 7: Account Closing Charges

Duration

Scheme

Charges (Rs)

Before 1year of account opening

Current

1000

Saving

500

Current

500

Saving

300

After 1year of account opening

Procedure to Close the Account

Ask the customer to fill up the account closing form.
Collect the unused checks and ATM/ Bharat Yatra Card.
Verify the customers signature and check all the liabilities.
Take the closing form to operation in-charge for their consent and
signature.

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 Settlement of the balance after deducting all the required charges and
remaining amount.
Close the account in the system (FINACLE).
Account closing with all documents is filed in account closing file.
The returned ATM card and checks should be destroyed and blocked.

4.1.4 Preparing and Issuing Check Book

In NSBL, CSD officer is placed in preparing the check book, make entry in the check
book register and provide the check book to the customer as per their request. New
check is issued only by verifying the signature of the account holder. The check book
is provided to the existing customers by verifying the signature in check requisition
slip with the signature in the check book register. NSBL provides 5 leaves check book
for new account holder and after first issuance number of leaves on check book are
provided as per the demand of customers.

4.1.5 Distribution of ATM Card

In NSBL, the CSD keeps the record of new ATM and pin in the register, file the information
slip and arrange ATM and Pin No in vault. ATM with Pin No. is only provided to the account
holders by verifying original signature of the applicant. Customers are informed through
phone calls to collect their ATM and Pin No.

4.1.6 Distribution of E-Banking (Username and password)

Internet banking facility of NSBL is free of cost service provided to all the a/c
holders, where we can enjoy checking our balances, transferring money to our
friend/family or block some stopped check, view and print statement, etc.
Procedure for E-Banking

Account holder has to fill up the e-banking form and maintain authorized
signature.

After verifying the details form is sent to the card department and after 1
week account holder will get the facility of e-banking.

The CSD officer provides the username and password along with the
necessary information after making the entry in the register to the user.
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The account holder then can use internet banking service for balance inquiry,
statement, and fund transfer etc. simply getting log in to e-banking application
presented in home page of NSBL i.e. www.nepalsbi.com.np
4.1.7 Handling Incoming Calls
Being the customer oriented department CSD handles numerous phone calls and
interns also play a crucial role in handling phone calls and solve the queries of the
customers.
4.1.8 Filling up the KYC Form and Follow Up
Know Your Customer (KYC) is detail information about the Customer. KYC is the
fundamental principles used in identifying who the customers are, their background
information and monitoring their transactions in order to mitigate the banking risk
arising out of these Customers. This KYC guideline is recently issued by NRB to
categorize the customer as high risk, medium risk and low risk customer. The CSD
Officer is responsible for filling up the KYC form to identify the customer. Apart
from it, existing customers are also informed and requested to fill up their respective
KYC form as an important update of their details.
4.1.9 Making Entries in Respective Register
The CSD officer maintains the register and makes the every entry of all documents in
their respective register. The entry of demand draft, TT, RTGS, SWIFT, BYC, EBanking, ATM etc are done by CSD officer after the office hour is over.

4.2 Observed Gap

Knowledge is different while put through practice and its a totally different
environment at work. But the learning we had in the classes been certainly fruitful to
derive the necessary solutions for the problems at work. The management lessons we
had been learning may take a little higher level to utilize but we could sense its
presence at every moment of work. The gap between the theory and practice is always
there and we felt the very same difference while at work.

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CHAPTER FIVE
CONCLUSION AND LESSON LEARNT

5.1 Conclusion
NSBL Bank is one of the leading commercial bank in Nepal which aims to position
itself as a progressive, cost effective & customer friendly institution providing
comprehensive financial and related services to its customers. During the two month
of internship at NSBL, internee was provided with ample opportunities to get an
insight of core operation of the host organization in the complex business
environment, working with diverse mix of staff from different background and from
different works of life with profound knowledge and provided an experimental and
holistic learning experience. The study refers to the Customer service Departments
(CSD) that deals directly with the customers enquiries, handling complaints and
service distribution. NSBL is able to maintain strong relationship with its customer
through various customer oriented products and services.
Prior to internship, my knowledge was limited within the books. The theoretical
knowledge gained about the customer relation was actually implemented in the
practical banking settings. Internship has worked over the development of
communication and interpersonal skill of the internee. The Internee has also learnt
that the behavioral issues are most important inside the organization. Customer feel
satisfied when they are behaved properly. Their queries are needed to be answered in
a friendly way so as to retain them in the organization.
In conclusion, it can be conveyed that CSD is the most sensitive department. It is very
much clear that the bank realizes the huge part of income through customer
satisfaction. Although, other departments also play sensitive role for the success of
bank, huge credit goes to customer service department as it gives the first impression
to the customers. Hence, the bank must analyze such factors to gain success in the
future period through fulfilling customers needs and demands.

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It was really a great opportunity to serve as an intern in such a successful bank. It was
learning by doing kind of opportunity and had been successful to make a change
within myself. Internee is very much pleased to conclude that NSBL is one of the best
banks with friendly environment and excellent customer service. It is your bank
delivering the best financial products.

5.2 Lessons Learnt

During the period of internship at Nepal SBI Bank, the interne was cooperatively
guided by all the staffs for gaining in-depth banking knowledge. The learning
environment of Nepal SBI Bank was pleasant and outstanding. Therefore, the major
lessons that are learned during internship can be listed as under:

Basic activities and operations of CSD and its role in overall functioning of a
commercial bank.

The working procedure of cash and remittance department.

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 customers of any business organization are the key to the success of the
organization. So, the organization should not forget its existing customer and
try to retain its customers as well as attract new customers.

Authority and responsibility relationship among the various managerial and

subordinate level in the hierarchy of the commercial banks.

Learned to speak, function and work in corporate way

The real working environment and practical exposures are quite different
from the theoretical knowledge that we have learned in class room.

Using various office equipments like photo copy machine, cheque writer, etc
and software like Finacle.

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