AN INTERNSHIP REPORT ON

HIMALAYAN BANK LIMITED (HBL)

Submitted By:

Submitted To:
Office of the Dean
Faculty of Management
Tribhuwan University

in partial fulfilment of the requirement for degree of

Bachelor of Business Administration (BBA)

Old Baneshwor, Kathmandu

August, 2013

RECOMMENDATION
This is to certify that the fieldwork assignment report

SUBMITTED BY:
RAVI SHRESTHA
Exam Roll No: 6770-09
T.U. Registration No: 7-2-388-81-2009

Entitled:
An Internship Report on
Himalayan Bank Limited

has been approved by the Kantipur College of Management & Information

Technology.
This field work assignment report is forwarded for examination/evaluation.

_____________________
MR. Sharad Sigdel
Internship Report Supervisor

DECLARATION

I hereby declare that the Internship report entitled An Internship report on

Himalayan Bank Limited submitted to Office of the Dean, Faculty of

Management, Tribhuvan University is my original work, done in the partial fulfilment
of the requirement of Bachelor in Business Administration (BBA)

__________________
RAVI SHRESTHA
BBA 2009-2013
Roll No.: 6770/09
TU Reg. No.: 7-2-388-81-2009

ACKNOWLEDGEMENT
First of all, I would like to express my deep gratitude to Tribhuvan University for
including such a wonderful program as part of the curriculum for Bachelor in Business
Administration. This opportunity helps to extend my theoretical knowledge to the real
world.
I also would like to thank management of Kantipur College of Management and
Information Technology for the guidance in the preparation of this report.
My Appreciation also goes to the Himalayan Bank Limited for providing me with the
opportunity of doing internship in their renowned organization. The whole family of
Himalayan Bank has supported me in coping with the surroundings and helped me to
learn various things during the duration of Internship.
I would like to offer my heartfelt appreciation to my report supervisors Mr. Sharad
Sigdel and Mr. Aman K.C. for their entire guidance, valuable suggestions,
encouragements and support throughout this report.
My Appreciation also goes to the Himalayan Bank Limited for providing me with the
opportunity of doing internship in their renowned organization. The whole family of
Himalayan Bank has supported me in coping with the surroundings and helped me to
learn various things during the duration of Internship.
Lastly, I would like to give gratitude to my family members and friends for their moral
support throughout the report. Without their support, I never would have completed
my report so effectively.

Ravi Shrestha

TABLE OF CONTENTS
Title

Page No.

Cover Page
Recommendation Letter
Internship Completion Letter
Declaration
Acknowledgement
List of Tables
List of Figures
Abbreviations

Chapter One: Introduction

1-3

1.1 Background of the Study

1.2 Objectives of the Study

1.3 Methodology

1.3.1

Organization Selection

1.3.2

Placement

1.3.3

Duration

1.3.4

Nature & Source of Data

1.4 Limitations of the Study

Chapter Two: Introduction of Banking Industry

4-8

2.1 Introduction of Banking Industry

2.2 Evolution of Banking Industry

2.3 Evolution of Banking Industry in Nepal

2.4 Overview of Nepalese Financial Market

2.5 Types of Bank

2.5.1 Commercial Bank

Chapter Three: Introduction of Organization

3.1 Introduction of Himalayan Bank Limited

9-15
9

3.2 Vision, Mission & Objectives

10

3.3 Capital Structure

10

3.4 Organization Structure of HBL (New Road Branch)

11

3.5 Products & Services Offered

11

3.5.1 Products

12

3.5.2 Services

13

3.6 Financial Analysis of HBL

14

3.7 SWOT Analysis

15

Chapter 4: Analysis of Activities Done

4.1 Customer Service Department (CSD)

16-34
16

4.1.1 Activities done in Customer Service Department

16

4.1.2 Problems Identified in Customer Service Department

20

4.1.3 Problems Solved in Customer Service Department

21

4.1.4 Analysis of Customer Service Department

21

4.2 International Banking Department

22

4.2.1 Activities Done in the International Banking Department

22

4.2.2 Problem Identified in International Banking Department

25

4.2.3 Problems Solved in International Banking Department

26

4.2.4 Analysis of International Banking Department

26

4.3 Credit Department

27

4.3.1 Activities Done in the Credit Department

27

4.3.2 Problem Identified in Credit Department

29

4.3.3 Problems Solved in Credit Department

30

4.3.4 Analysis of Credit Department

30

4.4 Remittance / Bills Department

31

4.3.1 Activities Done in the Remittance / Bills Department

31

4.3.2 Problem Identified in Remittance / Bills Department

33

4.3.3 Problems Solved in Remittance / Bills Department

34

4.3.4 Analysis of Remittance / Bills Department

34

Chapter Five: Conclusion and Lessons Learnt

35-36

5.1 Conclusion

35

5.2 Lesson Learnt

36

Bibliography
Annex

LIST OF TABLES
Table

Title

Page No.

2.1

Growth of Financial Institution

3.1

Share Ownership

11

4.1

Number of Data Entry Done by Intern in International Banking

24

LIST OF FIGURES
Figure

Title

Page No.

1.1

Gantt Chart of Duration of Internship

3.1

Deposit Products of HBL

12

3.2

Loan Products of HBL

13

3.3

Services of HBL

13

ABBREVIATION
A.D.

Anno Domini

ATM

Automated Teller Machine

BBA

Bachelor in Business Administration

Bi. Bi. Ni.

Bideshi Binimaye Niyemawali

B.S.

Bikram Sambat

CAP

Credit Approval Package

CEO

Chief Executive Officer

CIB

Credit Information Bureau

CLR

Credit Liability Report

CSD

Customer Service Department

DAP

Document Against Payment

Dept.

Department

ECC

Electronic Cheque Clearing

etc.

Etcetera

FOM

Faculty of Management

GDP

Gross Domestic Product

HBL

Himalayan Bank Limited

HMG/N

His Majestys Government of Nepal

Intl

International

i.e.

That is

KYC

Know Your Customer

LC

Letter of Credit

NGO

Non Government Organization

NRB

Nepal Rastra Bank

ROA

Return on Assets

ROE

Return on Equity

RM

Relation Managers

SMS

Short Message Service

SWIFT

Society of Worldwide International Financial Telecommunication

TU

Tribhuvan University

CHAPTER ONE
INTRODUCTION
1.5 Background of the Study
Internship program has been designed for the partial fulfilment of the degree of
Bachelor in Business Administration (BBA). BBA is a program launched by
Tribhuvan University (TU) under the Faculty of Management (FOM), with eight
semester's provision covering an international standard period of four years. It covers
class lectures, group discussions, case studies, seminar, practical exercises, project
work, term paper and internship. BBA is a broad education program to prepare the
students for much advanced middle level leadership in both private and public sector.
The purpose of the program is to develop and strengthen the students knowledge and
skills. With regard to this, FOM has combined internship with the course and make it
compulsory for the time period of two months.
An internship is a directed, practical learning experience, outside of the normal
classroom setting, in which students sharpen skills, gain experience through work on
advanced productions, apply classroom learning to professional settings or projects,
and learn firsthand how professional companies or organizations operate. The
internship exposes the students interpersonal relationships that a job requires.
This report is based on the two month internship experience and knowledge gained on
the internship time duration. It mainly focuses on the job done by the intern and
experienced gained. It also includes the things which intern has seen during the period.

1.6 Objectives of the Study

The general objective of this study is to fulfil the requirements of the degree of BBA.
The main objective of this study is to explain the experience of the intern during the
internship period. The other specific reasons are as follows:

To know about the banking sector.

To know about the institution where the internship is done.
To get the knowledge about the process of different work.
To know the activities done by the intern.
To analyze different departments of the bank.

1.7 Methodology
Methodology is the description of the procedure followed while collecting the

necessary data and information needed for research work and report preparation.
Various data were collected by observation, different websites, annual report of
Himalayan Bank Limited (HBL), etc.

1.3.1 Organization Selection

For the internship, intern had selected the Himalayan Bank Limited, New Road
branch. HBL has been one of the successful commercial banks in Nepal for al long
period of time. It had been a great opportunity for intern to acquire knowledge and
skills during the internship period. The selection of the organization has been possible
through the personal references and with few other documents. After the few followup, HBL provided the internship during the interval of 15th May to 14th June 2013.

1.3.2 Placement
Intern had been placed in the different departments during the duration of the
internship as per the culture of Himalayan Bank Limited. Intern had worked for the
time interval of two months and spent different time periods in different departments
like customer service, remittance, international banking and credit. Intern had worked
with full enthusiasm and confidence in the entire department.

1.3.3 Duration
The duration of internship period has been defined for 8 weeks or 6 credit hours (i.e.
96 hours of working time at any financial institution for finance specialization
students) by FOM, TU. Intern had the opportunity to work for two months starting
from 15th of May to 14th of July. The intern had been placed in various departments and
the duration of time interval in those departments are shown in the following figure:
Figure 1.1: Gantt Chart of Duration of Internship

Department

< ----------------------- 15th May to 14th July -------------------------- >

Customer Service 15th May- 1st June

Intl Banking
2nd June 20th June
Credit
21st June 7th July
Remittance
8th July 14th July

1.3.4 Nature & Source of Data

Primary and secondary data has been used during the preparation of the report, and
below is the brief description about the nature and sources of data:

Primary Data
The primary data were collected from day to day activities, discussion and information
provided by the different officials of various departments.
Secondary Data
The secondary data were collected from the various sources like annual report,
broachers, official websites and other publications.

1.8 Limitations of the Study

There have been some limitations on the report despite the hard work to make it fully
approved. Some of the limitations are described below:

The analysis is only based on the New Road branch.

The whole department analysis and information are not included in this report.
The information collected is not sufficient due to the short period of time

interval.
The interpretations are made under personal judgment, which is not guided by

the experts and professionals.

The study may not be applicable to other organizations of similar nature.

CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY
2.1 Introduction of Banking Industry
A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of

deposits and it lends money to those who need it. In other words, the bank is the
institution that makes money in terms of receipt of income and payment of
expenditures and deposits. So, the bank creates credit by providing loans to individual,
traders and businessman. The bank also receipt deposits from the customer to
safeguard it and promise to repay at the time of their need. Interest is provided for the
money deposited and taken on the loan provided by the bank.
The function of the bank is changing day by day. The development of new services by
the banks around the world is changing the definition along with it. Initially, the banks
are considered as the institution that only takes deposit and lends money to the needed
persons. But, the services have been innovated to the whole new level. Now-a-days,
the bank provides an easy way to pay bills through the maintained account. Not only
that, they provide many services such as accepting various deposits, making different
kinds of loans, providing means of payment, electronic banking, and other services
such as travellers cheques and money orders.
An establishment authorized by a government to accept deposits, pay interest,
clear checks, make loans, act as an intermediary in financial transactions, and
provide other financial services to its customers. Business Dictionary
So, the bank can be described as the financial institution whose major function is to
provide the loan and to deposit the money from the people along with providing the
various financial services to their customers.

2.2 Evolution of Banking Industry

History of Banking begins with the first prototype banks of merchants in the ancient
world, which made grain loans to farmers and traders who carried goods between
cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece
and during the Roman Empire, lenders based in temples made loans and added two
important innovations: they accepted deposits and changed money.
Banking, in the modern sense of the word, can be traced to medieval and early
Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th century Florence,
establishing branches in many other parts of Europe. The oldest bank still in existence

is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating
continuously since 1472.
The development of banking spread from northern Italy through Europe and a number
of important innovations took place in Amsterdam during the Dutch Republic in the
17th century and in London in the 18th century. During the late 18 th century, J.P.
Morgan and Company emerged at the head of the merchant banks and nearly created
the monopoly in the market. Later, the panic in the collapse of the share end that era.
Then, the struggle continues until the World War II as it saved the banking industry
from complete destruction. It lifted the downward spiral of the banking sector as the
billions of dollar is needed for the war. Later the 2007-08 financial crisis caused many
bank failures, including some of the world's largest banks, and provoked much debate
about bank regulation.
Although history has altered the fine points of the business model with the modern
telecommunications and computing mechanism, the banks will never stop to perform
this primary function.

2.3 Evolution 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 at a very concessional interest rate. The
Tejarath Adda disbursed credit to the people on the basis of collateral of gold and
silver. All employees of government were also eligible for this type of loan, which
was settled by deducting from their salary. Tejaratha Adda extended credit only; it did
not accept deposits from the public.
In 1937 A.D. Nepal Bank Act was formulated which established the Nepal Bank
Limited; the first commercial bank in Nepal which was founded by Judda Samsher.
Later, the countrys central bank, Nepal Rastra Bank (NRB) was established in 1956
by Nepal Rastriya Bank Act of 1955, after two decades of Nepal Bank Limited
having been in existence. The need of the central bank emerges due to the Sadar
Mulukikhana Adda (local treasury of the government) which issued currency notes.
At that time, the foreign exchange reserves of Nepal were maintained by Reserve

Bank of India who circulated the Nepalese currency as well as Indian currency in the
Nepalese economy.
A decade after the establishment of NRB, Rastriya Banijya Bank (RBB), a commercial
bank under the ownership of His Majestys Government of Nepal (HMG/N) was
established. Thereafter, HMG/N adopted open and liberalized policies in the mid
1980s reflected by the structural adjustment process, which included privatization,
tariff adjustments, liberalization of industrial licensing, easing of terms of foreign
investment and more liberal trade and foreign exchange regime was initiated. With the
adoption of liberalization policy, there has been rapid development of the domestic
financial system both in terms of number of financial institutions and as ratio of
financial assets to the GDP.

2.4 Overview of Nepalese Financial Market

As the statistics of NRB, by the end of mid July 2012, altogether 265 banks and nonbank financial institutions licensed by NRB are in operation. Out of them, 32 are A
class commercial banks, 88 B class development banks, 69 C class finance
companies, 24 D class micro-credit development banks, 16 saving and credit cooperatives and 36 NGOs. In mid- July 2011, the commercial banks branches reached
to 1425 with the population of nineteen thousand per branch. Present development of
financial institutions in Nepal is reflected in table below:
In the Nepalese financial market, the total capital fund in the 2012 A.D. is Rs
117,979.6 million among which commercial banks covers 65.4% of it. During the
year, the total borrowing reaches to Rs 34,392.3 million along with the deposits of Rs
1,076,629.3 million. In 2012, the other liabilities and liquid fund of the institutions
reaches to Rs 126,163.1 million and Rs 241,900.3 million respectively. Besides these,
the total investment equals to Rs 209,934.4 million; loan and advances reaches to Rs
807,579.3 million and other assets is only Rs 94,913.2 million.
Table 2.1: Growth of Financial Institution

Types of Financial
Institutions

Mid July 2011

1985

1990 1995 2000 2005 2010 2011 2012

Commercial Banks

10

13

17

27

31

32

Development Banks

26

79

87

88

Finance Companies

21

45

60

79

79

69

Micro-credit Development

11

18

21

24

19

20

15

16

16

47

45

38

36

Banks
Saving & credit cooperatives
NGOs (Financial
Intermediary)
Total
5
7
44
98
181 263 272 265
(Source: Bank and Financial Institutions Regulation Department, NRB)

2.5 Types of Bank

Different types of bank still exist in the world and they are differentiated by their
nature of function. Generally, people perceive the commercial bank as the general
bank but their perception is wrong as there are many other types of bank. Some of
them are as follows:

Central Bank
Commercial Bank
Development Bank
Exchange Bank
Saving Bank
EXIM Bank (Export & Import Bank)
Co-Operative Bank
Other
o Labour Bank
o Regional Bank

2.5.1 Commercial Bank

Commercial Bank is a financial institution that provides services, such as accepting
deposits, giving business loans and auto loans, mortgage lending, and basic investment
products like savings accounts and certificates of deposit. The traditional commercial

bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs.
For the development of the commercial sector it provides different facilities like
capital, information supply, etc.
Commercial bank means a bank which operates currency exchange transactions,
accepts deposits, provide loan; performs, dealing, relating to commerce except the
banks which have been specified for the co-operative, agricultural, industry of
similar other specific objective. Section 2 (a) of Commercial Bank Act 2013
B.S.
There are some functions of commercial bank and they are:

Accepting various types of deposits

Lending money to needed sectors
Letter of credit i.e. credit creation
Issue of guarantee
Agency function
General utility function
Money remittance
Bills acceptance and others

There are currently 31 commercial banks licensed by NRB in Nepal. The detail of
their establishment date and paid up capital are given in Annex I.

CHAPTER THREE
INTRODUCTION OF ORGANIZATION
3.1 Introduction of Himalayan Bank Limited
Himalayan Bank Limited (HBL) is one of the largest and reputed private sector banks

of Nepal. The Bank was incorporated in 1992 by a few eminent individuals of Nepal in
partnership with the Employees Provident Fund and Habib Bank Limited of Pakistan.
The bank commenced its operations in January 1993. Himalayan Bank is also the first
commercial bank of Nepal with most of its shares held by the private sector of Nepal.
Besides commercial banking services, the bank also offers industrial and merchant
banking service. Despite the cut-throat competition in the Nepalese Banking sector,
HBL has been able to maintain a lead in the primary banking activities- Loans and
Deposits.
Legacy of Himalayan lives on in an institution that's known throughout Nepal for its
innovative approaches to merchandising and customer service. Products such as
Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme
besides services such as ATMs and Tele-banking were first introduced by HBL. Other
financial institutions in the country have been following HBL lead by introducing
similar products and services. Therefore, HBL stand for the innovations that it brings
about in this country to help its Customers besides modernizing the banking sector.
With the highest deposit base and loan portfolio amongst private sector banks and
extending guarantees to correspondent banks covering exposure of other local banks
under credit standing with foreign correspondent banks.
All Branches of HBL are integrated into Globus (developed by Temenos), the single
Banking software where the Bank has made substantial investments. This has helped
the Bank provide services like Any Branch Banking Facility, Internet Banking and
SMS Banking. Living up to the expectations and aspirations of the Customers and
other stakeholders of being innovative, HBL very recently introduced several new
products and services. Millionaire Deposit Scheme, Small Business Enterprises Loan,
Pre-paid Visa Card, International Travel Quota Credit Card and Consumer Finance
through Credit Card are some of the products and services. HBL also has a dedicated
offsite Disaster Recovery Management System.
Looking at the number of Nepalese workers abroad and their need for formal money
transfer channel; HBL has developed exclusive and proprietary online money transfer
software- HimalRemitTM. By deputing HBL staff with technical tie-ups with local
exchange houses and banks, in the Middle East and Gulf region, HBL is the biggest
inward remittance handling Bank in Nepal. It shows that HBL has an outside-in rather

than inside-out approach where Customers needs and wants stand first.
HBL has established a strong network over the country by using its branches. HBL is
aiming for increasing its perimeter by covering area as much as possible. Every year,
HBL is increasing its branches and moving towards its aim. Currently there are 41
branches altogether in and outside the valley. The detail list of branches is shown in
Annex III.

3.2 Vision, Mission & Objectives

Himalayan Bank Limited holds of a vision to become a Leading Bank of the country
by providing premium products and services to the customers, thus ensuring attractive
and substantial returns to the stakeholders of the Bank.
The Banks mission is to become preferred provider of quality financial services in the
country. There are two components in the mission of the Bank; Preferred Provider and
Quality Financial Services; therefore HBL believe that the mission will be
accomplished only by satisfying these two important components with the Customer at
focus. The Bank always strives positioning itself in the hearts and minds of the
customers.
To become the Bank of first choice is the main objective of the Bank.

3.3 Capital Structure

The total authorized share capital of HBL is Rs. 3 billion among which Rs. 2.4 billion
shares have been issued. Last year, HBL distributed the bonus share of Rs. 400 million
and this year HBL is planning to distribute 360 million rupee worth of shares in bonus
to its shareholders. The share ownership of the HBL is shown in the following table:

Table 3.1: Share Ownership

Particulars

As on July, 2012

Share Capital

80.00

1,920,000,000

65.00

1 ,560,000,000

15.00

3 60,000,000

2. Foreign Ownership

20.00

480,000,000

Total

100.00

2,400,000,000

1. Domestic Ownership
1.1 Nepal Government
1.2 "A" Class Licensed Institutions
1.3 Other Licensed Institutions
1.4 Other Entities
1.5 General Public
1.6 Others

(Source: 20th Annual Report, HBL)

3.4 Organization Structure of HBL (New Road Branch)

Himalayan bank limited has proper structure from top to bottom. The corporate office
controls all the branches, and the corporate office is governed by CEO of the bank
under the supervision of Board of Directors (details of BOD is given in Annex IV).
New Road branch is handled by the branch manager and a structural hierarchy follows
through the top. The detail of organization structure of HBL, New Road Branch is
shown in Annex II.

3.5 Products & Services Offered

Himalayan bank offers various kinds of products and services to its customers to fulfil
their demand. The bank is providing its services through a wide network of 41
branches throughout the nation; 17 of them located inside the Kathmandu valley and
other 24 are located around the country. All the branches of the bank are connected
through Anywhere Branch Banking System (ABBS), a facility which enables a
customer to do banking transactions from any of the branches irrespective of having
account in any branch.
Products such as Premium Savings Account, Super Premium Saving Account, Himal
Saving Account (Zero Balance Account), HBL Proprietary Card and Millionaire

Deposit Scheme are being provided by HBL. Besides these, ATMs services, Internet
banking and SMS banking are some of its services along with HimalRemit services are
being provided to its customers. Small Business Enterprises Loan, Pre-paid Visa Card,
International Travel Quota Credit Card and Consumer Finance through Credit Card are
some of the other products and services.
3.5.1 Products
Figure 3.1: Deposit Products of HBL

Deposit Products
Term Deposits

Call Deposit Account

Fixed Deposit Account
Structured Term Deposit Account
3 Year Recurring Deposit Account

Saving Deposit

Normal Saving Account

Bishes Saving Account
Himal Saving Account
Premiun Saving Account
Super Premium Saving Account
Himal Remit Saving Account
Shareholders Saving Account

Current Account

Figure 3.2: Loan Products of HBL

Loan Products
Corporate Loan
Funded
Loan
Credit
Financing

Retail/Consumer Loans

Project / Consortium
Non Revolving Cash
Working Capital

Overdraft Facility
Demand Loan
Revolving
Demand Loan
Short Term
Demand Loan
Revolving Cash Credit
Import Credit for Telex
Transfer and Demand
Draft Payment
Trust Receipt Loan
Export Credit Facilities
Pledge Loan
Clean Bills purchased
and
discounted
Documentary Bills
Purchased
and Discounted

Hire Purchase Loan

Housing Loan
Subidha Loan
Credit Card Loan
Loan against Fixed
Deposit Receipt
Loan against
Government
Bonds &
Bonds of
Bank
Loan against First
Class Bank Guarantees
Loan against Shares

Non-Funded
Letter of Credit
Bank Gurantee

3.5.2 Services
Figure 3.3: Services of HBL

Small and
Medium
Enterprises
(SME) Loan

Services

Locker
Internet Banking
SMS Banking
Credit Card
Debit Card
ATM Service
Remittance Service
International Banking
Travel Cheque

3.6 Financial Analysis of HBL

Financial situation of Himalayan bank is currently very good. According to its fiscal
year statement as on July, 2012 the bank has maintained its capital adequacy ratio
above the required limit. The tier I capital ratio of the bank is 9.60% while the total
capital ratio is being maintained at 11.02%. HBL earned the net profit of about Rs.
958.6 billion in the same fiscal year; which was more by 7.33% from the last years
net profit. The accumulated profit was Rs. 72.9 million during the last year.
The Himalayan bank has been planning for the any contingencies that might come its
way; so the bank has been keeping reserves and funds which now has reached to the
amount of Rs. 1.87 billion. During the same fiscal year, HBL accepted the total
deposits of Rs. 47.73 billion in interest bearing account and about Rs. 5.56 billion in
non-interest bearing account. The bank held the total cash balance of Rs. 951.3 billion
at the end of same fiscal year including both local and foreign currency. The bank also
believed that it has the balance of Rs. 3.98 billion in the NRB while the NRB
statement shows the amount of Rs. 4.05 billion.
The Himalayan bank has the net loan total of Rs. 34.97 billion at the end of the fiscal
year. The net loan of HBL was increased by 10.77% from the last year. From the loan,
HBL has earned the interest total to Rs. 4.72 billion. The bank has invested in other
securities up about Rs. 1.26 billion among the total of Rs. 10.03 billion in fiscal year
2011/12.

3.7 SWOT Analysis

Strength

Weakness

Qualified employees

Policy making

Good organization culture

ATM service

Proper internal communication

Extra Charges

Computerized system using latest

Less use of marketing strategy

technology
Branch Coverage
Innovation
Remittance service

Opportunity
Favourable law for the banking
sector
Increasing remittance market
Increasing knowledge of banking
sector to general public

Threats
Political instability
Domestic conflict
Limited resources
Threats of new entrance
Threat of substitute
Rivalry among existing firm

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
4.1 Customer Service Department (CSD)
Customer service department is most important department to develop the good
impression to the customer. CSD also known as the front desk helps the customer to
solve their query. Customer Service is the commitment to providing services to
external and internal customers, including providing information, technical support
and quality of services in a timely manner.
Customers are the main wealth of the organization. A loyal customer always uses the
product and services of the bank without looking into the other alternatives. Thats
why loyal customers are the main source of success of the organization. Its the duty of
the CSD to maintain the relationship with the customers and make them loyal to the
organization.
CSD performs various tasks in day to day operation. The basic tasks of CSD are
account opening, account closing / transfer, ATM card issue, cheque issuing, bank
statement issue, balance certificate issue, and many more.

4.1.1 Activities done in Customer Service Department

Intern had to perform various activities in CSD and some of them are described below:
Providing general information
Customer service department is the place where many people come to get information
regularly. It is the duty of an intern to provide information that is required by them.
Generally the intern had to provide information about the product and services of
HBL, their queries, regulations and documents required in various cases, the exact
place to consult for their requirement, etc.
Opening an Account
Account opening is very important thing in the organization. It not only helps to
increase the number of customer in the bank, it also helps to expand its business. The
more customers the organization has, the more success it can get. Intern had huge
responsibility in the opening an account. Firstly intern had to provide the information
regarding the various accounts that HBL have with all the benefits and features of the
accounts. Then intern had to tell about the necessary documents that are required to
open an account. If the person is satisfied with the product and have all the documents
then inter had to provide the required forms necessary to open an account.
The next thing intern had to do is to check all the documents are valid or not and the
data in the forms are correctly written or not. Then intern had to place all the document
copy in an order and pass it to the office for further process. After the process, inter
had to bring the document to CSD department head and operation in charge to get sign
and officially open an account.
Making New Account File
Intern had to make the file for the new account opening. According to the nature of the
account, the file is selected. Intern had to specify the name and the customer
identification number in front of the file clearly. Intern also had to put the letter of
opening in the file and in the box containing all the letter of opening.
Closing or Transfer an Account
Customers sometimes have to close their account or to transfer it to another branch.
Its the duty of an intern to provide the necessary form to the customer and tell them
about the procedure and charge of Rs. 500 for closing an account. After the submission

of form along with the cheque slips (if any) by the customer, the intern had to write the
information on the register about the customer and reasons to close or transfer the
account. These reasons help the bank to improve their services in future. Then the
intern had to put cancellation stamp on those cheque slips and register it into different
register.
The further process is done by the officer to close or transfer an account and then inter
had to visit different departments (cash, remittance, letter of credit, credit and locker)
to make sure everything is clear to close or transfer that account.
Preparing Cheque book
Intern had to prepare the cheque book according to the request of the customer. The
responsibility of the intern is to fill up the new cheque requisition slip and tear the
cheque slips from the printer. Then intern had to make sure that the number in the
cheque requisition slip and the cheque slip are same. After that, intern had to place the
cheque slip in order and bind it with the cheque cover. During the process, the new
requisition slip must be placed carefully between the cheque slips and intern had to
remember the total number of cheque slips and had to calculate where to put that
requisition slip. Intern also had to search the cheque book from the box at the time of
issuing the cheque book.
ATM Card Distribution
ATM card distribution is one of the day to day activities that an intern had to do in
CSD. The intern searches the ATM card of the customer who asks for it. If the card is
found then the intern had to search the document related to the card. Then its the duty
of inter to request the customer to fill out form of acknowledgement of card receipt.
The intern had to check if there is copy of identification or not; if not, then the intern
had to ask for it and have to photocopy it to attach with the form. The intern also had
to check if the customer is taking new card or replacing old with new; if the customer
is replacing then the inter also had to ask for the old card and then punch the hole after
the process. After that, inter had to enter the data in the register and pass it to the
officer for the further process.
ATM Pin Distribution
Due to the system change, HBL had updated the pin number of all the ATM card
holders who had the expiry date above June 2016. Below that date, the customers have

to replace the card. So due to this reason, the customer regularly comes in the HBL
New Road branch to ask for their pin number. And it is the intern who had to provide
them the pin number after searching the pin in the pin collection box. The intern
requests the customer to fill out the form of acknowledgement of pin receipt and asks
for their identification to attach along with the form after the copy. Then, the intern
had to register the data in the pin register and pass it to the officer to issue it.
Printing Bank Statement
Bank statement is the list of transaction that has been occurred during the certain
period of time. Intern had to request the customers who are interested in printing out
their bank statement to write their account number, date from which the statement is
required and their signature. Intern first had to check their account number and their
signature because the statement is only provided to the account holder. Then, intern
should the print the statement from the date they have asked for using the T24
software.
Balance Check
Many customers frequently ask for the balance in their account and the amount in the
cheques they are holding. So, intern had to check the balance by entering the account
number in the respective search heading of the software. Intern can tell the amount to
the account holder. Intern cant tell the amount of the account to the person holding the
cheque but can tell if there is sufficient amount in the account or not to withdraw the
cheque.
Signature Verification
Sometimes intern had to check the signature in the different forms. Intern also had to
check the signature of the cheque on the request of the customer and sometime when
the customer forgets their signature.
Handling Phone Calls
Handling phone calls are as important as handling the customers face to face. Through
phone calls, the customers ask many different questions and require different
information. Intern had the responsibility to handle the phone calls and solve the query
of the customers. If intern doesnt know the answer then intern had to pass the call to
the officer.

Making Phone Calls to Customers

Intern had to call the customer and inform them about their ATM cards which have
arrived in the bank. Intern also had to contact the customer regarding different issues
like asking for the different document, to fill out the Know Your Customer (KYC)
form, etc.
Filing
Intern had to update the file of different customers on day to day basis. The transaction
that occurred in the CSD must be placed in the file for the future reference. The
transaction includes issuing of ATM card or pin number, change of signature, request
of the customer on various matters, change in nominee, etc. Intern had to put the
documents by checking the customer identification number which is provided at the
time of opening an account.
Photocopy
Photocopy is done in the CSD on a regular basis. Important documents are needed for
future reference if in case any misunderstanding happens. So, its the duty of intern to
photocopy the document and place where it belongs.

4.1.2 Problems Identified in Customer Service Department

During the internship period, intern had identified few problems in CSD and they are
mentioned below:
Workload Problem
Workload problem arises when the employees are unable to meet the need of the
customers. During the internship period, intern had seen that many customers were
unsatisfied by the services provided due to the long waiting time. Workload problem is
caused by the insufficient number of employees in the CSD.
Problem in Grievance Handling
Intern had identified that the method of handling the grievances are improper.
Grievance handling problem is occurred due to the lack of defined procedure and
inflexible rules towards small issues.
Problem in Filling Forms
Different forms are filled everyday in the CSD and many people finds many terms

difficult to understand while filling the form. The intern had identified that some of the
forms contain the technical words and terms which causes confusion in customers
mind.
ATM Problem
During the internship period, intern had identified that large number of customer
complained about the ATM service. The customers main complaint is about the ATM
card process during the transaction. The other problems related to ATM are time
duration to get new card, lack of information on card receiving and time period to
collect the card.
Lack of Brochure
Many customers want the brochure during their visit in the CSD to know about the
different accounts, there features and the interest rates provided in them. But, due to
the regular change in the banks interest policy, intern had identified that there is lack
of proper updated brochure in the department.

4.1.3 Problems Solved in Customer Service Department

Intern had solved few problems during the period of internship in CSD and they are
described below:

Helping the customer to fill out the different forms and describing the
complicated terminologies.

Describing different accounts along with its features and interest due to the
lack of brochure.

Dealing different customers who have different attitude accordingly.

Finding the missing documents.

Informing the problem that raise during the interaction with customers to the
authorized person for the solution.

4.1.4 Analysis of Customer Service Department

There are lots of work that intern is not allowed to do during the internship period in
CSD. However, intern had analyzed the work done by employees and department head
to some extent and from that intern had learnt and realized many things. First of all,
intern had seen the difference in the work done by the experienced employee and the

inexperienced intern. Intern generally handles the entire customer with the same
magnitude and style despite the difference in the attitude of the customer; while,
employee handles the customer differently every time according to the attitude and
behaviour of the customer. Intern had analyzed that how difficult it is to do the
simplest of thing when the pressure of the workload increases. Intern had also seen
that the software layout that uses in the bank is different according to the position of
the employee. Intern had learnt that due to the simplest of mistakes there can be huge
problem during the operation. Intern had also recognized the importance of the
hierarchy in order to work and solve the problem.
During the internship period, the intern had seen huge difference in number of
employees in the CSD and the changes that occurred due to that fluctuation in number.
The bad impact due to the crowded CSD and the lack of employees in some period
had been seen by the intern and recognized the importance the need of the best number
of employees that works efficiently.

4.4 International Banking Department

The international banking department of a bank is primarily responsible for financing
foreign customers or domestic clients involved in foreign dealings. Its the place where
the bank provides the services to the international level. Its the important part of the
bank as it helps to gain the reputation outside the country.
The services provided in the international banking department are generally nonfunded. Non-funded facilities are those facilities where the cash transfer in not done to
the customer by the bank. Since, cash are not used by the bank; these services can
prove the good profitable services to the bank. Its basically triggers the off-balance
sheet risk to the organization.
International banking department includes the services of import letter of credit (LC),
export letter of credit, bank guarantee and money transfer services like draft and
SWIFT. The general activities that are performed in the international banking
department are opening of LC, fund transfer, issuing bank guarantee, LC amendments,
and so on.

4.4.1 Activities Done in the International Banking Department

Intern had to perform various activities in international banking dept. and some of

them are described below:

Opening Letter of Credit
Letter of credit it an important function of the bank as it links with the international
banks. A small mistake can cause huge loss for the bank financially and image wise
also, so the task performed in the LC is handled by competent official. Opening LC is
the huge job because the every corner of the information has to be analyzed carefully.
It is the duty of an intern to provide the necessary forms to the applicant. Intern had to
check the forms and document that are submitted by the applicant. Intern had to make
sure the forms like LC opening form and Bi. Bi. Ni. form no. 3 are submitted along
with the Performa invoice.
Intern also had to check the required information (i.e. product list, price, quantity,
harmonic code, terms and condition, beneficiarys bank, etc) are present in the
Performa invoice or not. Then intern had to check if the forms are correctly filled or
not. If everything is alright then the forms and documents are submitted to the official
for further process.
Checking Approval Sheet
After scrutiny of the application form and verification of applicants signature and
completing checklist, the approval sheet for opening of LC is completed. Basically
details of the applicant or customers outstanding liabilities towards the bank are
mentioned in the approval sheet. The details of the customers credit line (for funded
and non-funded) and customers current liability are obtained from the Credit Liability
Report (CLR) by the competent employee. Intern then had to check the approval using
the same CLR and if everything is alright then intern submits the approval sheet to the
other employee for further checking and process.
Preparing New LC File
After LC is approved by all the necessary departments and personnel, the head office
sends the original copy of LC and LC opening advice in the branch. Then intern had to
do photocopy the documents. After that, intern had to prepare new LC file. While
preparing the LC intern had to identify the information like corresponding bank,
beneficiary name, applicant name, currency, amount, merchandise, date of shipment,
LC number and type of LC (i.e. sight LC or usance LC). Intern then also had to record
the data on the register.

Providing LC to Applicant
After the arrival of original copy of LC, its the duty of intern to provide the duplicate
copy of LC and the original LC opening advice. First, intern had to check the terms
and condition of the LC to know if insurance copy is necessary or not from the
applicant. If yes, then intern had to ask for the insurance copy and check the
information with the LC. If everything is correct or insurance is not needed, then the
documents are provided to the customer under the supervision of the officer in charge
of document of LC.

Filing
Intern had to do the filing job on a day-to-day basis. Intern had to store and retrieve
different type of files according to the requirement of the employees. The files are
stored on the basis of LC numbers which are provided according to the nature of
transaction and the currency used for transaction.
Data Entry
Intern had to enter the different types of data on the different register. While opening
the LC intern had to enter the record of new LC opening in the register according to its
country of business and currency. Intern also had to enter the data of the documents
arrived in the department. The information of the LC is written in the two different
registers specifying its main points. The documents that are known as document
against payment (DAP) and DAP are also registered in the same register but after
registering the document the new file is created for those transactions. During the time
of internship, the number of data entered by the intern in different register is given
below:
Table 4.1: Number of Data Entry Done by Intern in International Banking

Register for
Document Received
LC Opening for Nepal
LC Opening for India with Indian Currency
LC Opening for India with USD
LC Opening for 3rd Country (Except Nepal & India)
Total

Number
90
3
14
8
33
148
(Source: HBL)

Photocopying
Intern had to do photocopy of different types of document. The documents like
original copy of LC, LC opening advice, Bi. Bi. Ni. Form number 4, and few other
have to be photocopied during the internship period of intern.
Handling Phone Calls & Fax
This dept. is the first place where all the calls of the bank arrive and then the calls are
transferred to their specific places. Intern had the responsibility of handling the phone
calls in the absence of the employee or if employee is busy doing their task. Intern first
had to ask about the nature of the call and then transfer it the necessary place. Intern
also had to handle the fax machine. Inter had to handle every incoming fax and
transfer it the necessary problem.
Scanning
Intern also had to scan the documents and then had to send it to the necessary person
through the mail.

4.2.2 Problem Identified in International Banking Department

During the internship period, intern had identified few problems in international
banking department and they are mentioned below:
Problem in Communicating with Beneficiarys Bank
Intern had identified that due to the international boundary it is quite hard to
communicate with the beneficiarys bank. And the more trouble occurs when the
beneficiarys bank is not the corresponding bank. Intern had found that the difference
in the rules and regulation between the banks causes the communication problem.
Workload Problem
Intern had identified that in certain time the workload had been high. Due to this, the
employees were not able to work properly and the possibility of the quality of work
was low.
Improper Filing System
Intern had found that the filing system by the employee had been a serious problem as
the required document takes a lot of time to discover. Intern had realized that this
problem arises due to the low space for the filing system.

Problems in Electronic Instrument

Intern had identified that there had been regular problem in the electronic instruments
that are placed in the international banking department. The main problem occurred in
the photocopy machine and the printer.

4.2.3 Problems Solved in International Banking Department

Intern had solved few problems during the period of internship in international
banking department and they are described below:

Finding the missing files.

Helping employees during the time of workload.
Placing files in proper order.
Informing the administration dept. about the problems in the electronic

instrument.
Informing about the lack of new files in the dept. to the concerned person.

4.2.4 Analysis of International Banking Department

During the internship period, the intern had the opportunity of observing many things
in the international banking department. There are only few things that intern can learn
by doing the regular work, but the intern can really enlarge the knowledge by
analyzing the environment around the department. Intern had found that the LC is
very complicated thing and the process of it can be very lengthy. Intern had realized
that the LC can enhance the reputation of the bank in international level. During the
internship, the intern had the chance of knowing all the code of the LC and the
materials that should be included in it.
Intern had also got the opportunity of analyzing the different types of bank guarantee
and the process of issuing the guarantee. Intern had realized that the bank takes high
charges and the commission in these types of facilities. Intern had also analyzed about
the draft and SWIFT functioning for the international countries. Intern had realized the
difference between the draft and SWIFT. Intern had analyzed about the different rates
that are charged by the NRB in transacting the LC.

Intern had also got the opportunity to analyze the forward rates. Inter found that the
bank doesnt calculate any rates before issuing the forward rates and there is the
difference between the book knowledge and the real world functioning in doing the
forward rates.

4.5Credit Department
Credit department is the main source of the income of any bank. The main objective of
the bank is to provide the credit facility to the people who need the money. Credit is
the amount available to a company or individual from the banking system. It is the
aggregate of the amount of funds financial institutions are willing to provide to an
individual or organization on receiving of the interest.
Credit department provides different types of products and services to the customers.
Some of the products and services are credit card, corporate loan, small and medium
enterprise (SME) loan, and retail / consumer loan. Under these headings, there are
different types of loan that are sub-classified. Credit department holds the key to
success as it is also the main reason for the organization to go out of the business. So,
the credit department should be handled very delicately.
Credit department performs various tasks and some of them are preparing the Credit
Approval Package (CAP), issuing credit to the customer, issuing credit card, site visits,
interest deduction, relationship management, etc.

4.5.1 Activities Done in Credit Department

Intern had to perform various activities in credit dept. and some of them are described
below:
Filling Credit Information Bureau (CIB) Form
Credit Information Bureau is the agency that collects the information of all the credit
information of the different financial institution and stores in its database. The main
function of CIB is to provide the liability report of a person or a firm to the financial
institution if any of them wants the credit facility. For that purpose the financial
institution has to fill up the form provided by CIB to update their database on a

quarterly basis. Intern had been provided with the responsibility of filling up the CIB
form. While filling up the form intern had to search the whole file to extract the
information. The general information that it asks is about the personal information
(like 3 generation info, citizenship number, etc.) of loan holder in case of personal loan
and in case of a firm the information like Pan Number, Registration Number,
shareholders information, etc. Intern had to search the Credit Approval Package
(CAP), the offer letter and the valuation report to know about the loan and the security
provided by the loan holder.
Preparing Advice
Advice is the bill drawn under the name of the account holder to specify them about
the charges and fees that are charged by the bank against them. Intern had to prepare
the advice under the name of different account holder according to the charge taken by
the bank. Generally, interests charged are specified in the advice. Intern had to specify
the account holder name, account number, amount charged, reason, etc.
Preparing Balance Sheet and Income Statement
Balance sheet and income statement are important in the credit department because it
shows how the firms are operating and are competent to repay the loan amount with
interest or not. Intern had to enter the data on the software according to the
information provided by the customer. Inter faces some problem due to the
terminologies used by the customer. After entering all the data, the software provides
the total of balance sheet and shows if the assets and liability and equity are equal or
not. If everything is correct then the software automatically prepares the financial
highlights that include the different ratios, Altman Z model, ROE, ROA and few
others.
Updating Insurance Data
Banks asks insurance for all those things that are security of the loan and have
possibility of risk of any damage. Insurance ensures the bank in case the security is
damaged or stolen or so on. Intern had to update the time interval of the insurance after
loan holder provides the new insurance with new maturity period. Intern had to use the
software of the bank to perform this task. Intern also had to check how much time is
remaining until the expiry of insurance of different loan holder.
Update Values of Shares

Values of shares are important for the bank when the bank provides the loan against
shares. Thats means customer deposits the share as collateral in the bank to receive
the loan. The bank only provides the 50% of the value of total stock. The duty of the
intern is to check the average stock prices of past 180 days and the closing price of last
day and then calculate the total value of the stock that are provided by the customer.
Intern had to remember that during calculation the average stock price of past 180
days or closing price whichever is lower had to be used.
Filing
Filing is the tough job to do in the credit department; not because of the volume of
work but because of the size of file of loan. Intern had to do filing job on a regular
basis as many documents are updated time and again.
Photocopying
Intern had to know the photocopy machines function very well to complete the task of
photocopy in the credit department. Many documents that have to be photocopied are
in huge size, so the functions like ratios have to be known by the intern. Intern had to
photocopy many documents on a regular basis in the credit department.

4.3.2 Problem Identified in Credit Department

During the internship period, intern had identified few problems in credit dept. and
they are mentioned below:
Mistakes in Documents
During the internship period, intern had found many mistakes in the document of the
loan file. Intern had found that the problems in the document can lead to the serious
problem. Intern had informed the officer about the mistakes.
Lack of Insurance Update
Insurance are necessary to safeguard the position of the bank during any solvency of
the customer. Intern had identified that the insurance are not up to date and the amount
of the insurance are not same as identified in the offer letter.
Improper Filing
Intern had identified that the documents in the loan file are not properly placed i.e. the
documents are in not their column as they should be. Intern had faced problem in

finding the information due to this problem.

Last Minute Job Done
Intern had also identified that the employees had completed their job by rushing in the
last moment. For e.g. the interest rate that has to be taken at the end of the Ashad
month by debiting the account of customer were not deposited by the customer. On the
last day, employee contacted many of the customers for the deposit of the interest rate.

4.3.3 Problem Solved in Credit Department

Intern had solved few problems during the period of internship in credit dept. and they
are described below:

Informed about the mistakes in the document to the employee.

Rectification of the mistakes in the document.

Properly placing the document in the file.

Informed about the insurance that have been expired and not updated.

Helping the employee in problem solving.

4.3.4 Analysis of Credit Department

During the internship period in the credit dept. intern had analyzed the work done by
the officers, relation managers (RM) and the dept. head. Intern got the opportunity to
analyze the process of doing the work in the real field. During the time, intern had
analyzed the how the loans are provided to the firms and individuals. Intern had the
chance of studying the different manuals of the credit department. Intern had
compared the steps in the manual and the real process done by the employees; intern
found that there is not much of a difference in them. Intern also had the opportunity of
analyzing the process of making CAP and the way of interpreting the financial
highlights of firms by the employee in the CAP. CAP is an important document of the
loan process as the authorities approves the loan on analyzing the CAP.
Intern had also realized how challenging job it is in the credit department because of
regular monitoring of all the loans and documents time and again. Intern had observed
the process of providing the credit cards to the customer and had realized the
importance of the process in the delicate matter. Intern had analyzed the work of the
RM and observed how to maintain a good relationship with the customer. Intern had

analyzed that the credit department holds the high ratio of profitability of the bank and
is critical role for the success of the bank. Intern had observed that there is quite
regular and close monitoring from the branch manager in the credit dept. than other
departments.

4.4 Remittance / Bills Department

Remittance department is the place where the bank performs the transfer of funds.
Remittance dept. is important in running the bank successfully as it directly handles
the monetary transactions. Remittance dept. provides various products and services to
the customers of the bank. Some of the functions are Electronic Cheque Clearing
(ECC), HimalRemit, Moneygram, telex / SWIFT transfer and draft and term deposits.
Remittance department is another department from where the bank can gain the
revenue. The bank generally earns from the fees and commissions on providing
various product and services. The transfer of funds from the Middle East Asia is
successful service operated by HBL.
Remittance department performs different tasks during the day to day transaction and
some of them are entering data for ECC, providing money, performing telex / SWIFT
transfer and draft, cheque receipt, account to account transfer, cheque booking, etc.

4.4.1 Activities Done in Remittance / Bills Department

Intern had to perform various activities in remittance / bills dept. and some of them are
described below:
Putting Stamps
The flow of cheques in the remittance / bills dept. is huge as the function of Electronic
Cheque Clearing (ECC) is done in this department. To perform this task, intern had to
collect the cheques and cheques deposit voucher. Then intern had to put the stamp of
date received and signature on the copy voucher before returning it to the customer.
After that, intern had to put the stamp of endorsement and date on the back side of the
cheque. Before the change in the policy by NRB, intern had to put the stamp of bank
name in the front side of the cheque.
Account to Account Transfer & Cheque Booking
The cheques that the customer deposits should be record in the system for the process

of transferring the amount in the customer account from corresponding bank. The
cheques that are presented before 11 a.m. are cleared on the same day (except Friday);
that means the amount is credited on the same date in the customers account. The
cheques that are presented after 11 a.m. are cleared on the next day. Intern had to enter
some specific data (like corresponding bank short form, cheque number, amount, etc.)
into the system for account to account transfer i.e. to clear on the same date. Intern had
to enter some specific data (like code of the corresponding bank, cheque number,
amount, etc,) into the system for cheque booking i.e. to clear the cheque on the next
day.
Checking and Calculating the Amount
Intern had to check the document of Performa invoice and match the information with
the form for Draft or SWIFT transaction. Then intern had to calculate the amount of
the entire document including the fees and commission. Intern also had to remember
that the commission are charged according to the banks pre-defined rate.
Providing Information
Intern had to provide the information regarding the different functions done in the
remittance / bills dept. Intern had to provide information about the different rates on
the term deposits. Intern also had to tell the customer about the different vouchers
according to their need. Intern also had to inform about the change in regulation in the
process of ECC by NRB. Intern specifically had to clarify the customer about not
putting any stamp on the front side of the cheque as it would not be processed further.
Performing Moneygram Transaction
Intern had to perform the transaction of Moneygram (money transfer service). Intern
had to enter the data which are provided on the voucher. The system shows the balance
with respect to that data and if there is the positive balance then intern had to further
enter the information related to the person who provided the voucher. After that, intern
had to print the document and submitted it to the officer for further process.
Printing Document
Intern had to print the document of those cheques that are not cleared which are
processed on that day before 11 a.m. and the day before that. The document includes
the cheque information and the reason for not clearing the cheque. Then intern had do
attach those documents with the original cheque.

Making Phone Calls to Customer

Intern had to call the customer to make them inform about the cheques that has not
been cleared and its reason.

Filling Forms
Intern had to fill the different forms in this department. Intern had to fill the forms like
cheque deposit vouchers, term deposit form, HimalRemit voucher, Bi. Bi. Ni. form
number 4 ka and few others.
Photocopying
Intern had to photocopy the different documents on a regular basis. Intern also had to
photocopy the customer identity cards which are used in different transactions.

4.4.2 Problem Identified in Remittance / Bills Department

During the internship period, intern had identified few problems in remittance bills
dept. and they are mentioned below:
Workload Problem
Intern had found that in the remittance / bills dept. the workload is very high during
the opening and closing time; especially due to the ECC. Intern had identified that the
workload problem rose due to the customer trying to clear their cheques on the same
date.
System Problem
Intern had identified that the system of the remittance / bills dept. has problem. Intern
had found that the system crashed many times during the internship period.
Problem in Filling Forms
Intern had found that the customer had problem in filling the forms in the remittance /
bills department. Due to the different terminologies, the customer had problem in
filling the form. Intern had to help the customer on that.
Lack of Broachers
Intern had found that in the remittance / bills dept. the number of broachers for the
term deposit is very low and those broachers are even out of date. The customer had
problem in finding the term deposit rates due to this problem. The intern had to tell the

customer about the current interest rates in the term deposit.

4.4.3 Problem Solved in Remittance / Bills Department

Intern had solved few problems during the internship period in remittance / bills dept.
and some of them are described below:

Helping the customer to fill out the different forms and describing the
complicated terminologies.

Finding the missing documents.

Informing the problem that raise during the interaction with customers to the
authorized person for the solution.

Describing different interest rates of term deposit due to the lack of broachers.

4.4.4 Analysis of Remittance / Bills Department

Intern had been placed in the remittance / bills department for short period of time on
comparison to other department. However, intern had analyzed some of the works
done by the employee and the environment of the department. Intern had analyzed that
the job of ECC is critical as every failure of cheque clearance cost Rs. 250 to the bank.
So, intern had observed that the employee had to conscious for any mistakes in
cheques during the process of ECC and employee also had to be quick due to the
pressure of large volume of cheque. Intern had analyzed that the process of providing
the remittance money to the customer. Intern had also analyzed that the interest rates
can be managed to increase in case of large deposits. Intern had also analyzed the draft
and SWIFT differences and the process of doing it. Intern had observed the problems
occurred in remittance / bills dept. and how the employee solved that problem.

CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
Financial institution in Nepal is in emerging stage. The commercial banks are
dominating through their products and services; however, the other financial
institutions are on the verge of the huge competition. The rules and regulation are
matching the international standard while the foreign investments are in the right track
for the financial institutions.
The internship is done for the two month period in Himalayan Bank Limited. HBL is
one of the successful banks in the Nepalese banking industry for quite a long time.
HBL is known for their innovations in the financial sector. It has been quite a journey
in the field of finance for the intern. Intern had the opportunity to learn so many things
during the internship period. Internship had transformed the mindset towards the
banking industry. Intern had learnt various skills regarding the different departments
along with the knowledge of functioning of the bank.
Though the time period of the internship is short to acquire any depth knowledge,
intern had understood the mechanism of the different departments. Intern realized that
the success of the any institution lies in its customer and the loyalty from the customer
is more valuable than the number of customer. Intern had found that doing the same
thing with same person is simple, but doing the same thing with different person is
difficult. Intern had learnt how to use the theoretical knowledge in the practical field
but also found that every time the theoretical knowledge is impossible to apply. Intern
had learnt to cope with the different situation and learnt to bond with the new
surroundings.
The study has its vital significance to the intern and overall the intern found the
internship training at HBL, New Road Branch to be a very rewarding experience.

5.2 Lesson Learnt

Intern had learnt various things during the internship period. Some of the lessons
learnt from different departments are as follows:

Intern learnt about the different functioning of the bank.

Intern learnt how to use the theoretical knowledge and about some differences
between theoretical knowledge and real world practice.

Intern got the opportunity to learn about the KYC Policy.

Learnt general background of different departments like customer service,

international banking, credit and remittance.

Learnt how to keep the customers loyal.

Learnt about the general documents requirement in the various departments.

The importance of good working environment and the relation between the
employees.

Bibliography
Books
Shrestha, M.k. &. Bhandari. D.B. (2008). Financial Markets & Institutions, Asmita
Books Publishers and Distrbutors., Kathmandu.
Saunders, A & Cornett, M.M. (2010) Financial Markets And Institutions, Tata
McGraw Hill Company Ltd., India.
Gautam R., Gurung, R., Pokharel, J., Kadel,R. & Sigdel, S. (2011) Foundation of
Financial Instiutions and Markets. (2nded.) Ayam Publication Pvt. Ltd ,Kathmandu.
Brigham, E.F. & Houston, J.F. (2004). Fundamentals of Financial Management,
Thompson Asia Pvt. Ltd., Singapore.

Websites
http://www.himalayanbank.com/
http://en.wikipedia.org/wiki/Bank
http://www.duhaime.org/LegalDictionary/B/Bank.aspx
http://www.businessdictionary.com/definition/bank.html
http://www.investopedia.com/terms/c/commercialbank.asp
http://www.investopedia.com/university/banking/
http://finmanep.blogspot.com/2010/07/financial-market-general-background.html
http://nepalibankingsector.blogspot.com/2011/04/history-of-banking-in-nepal.html
http://en.wikipedia.org/wiki/History_of_banking
http://econkancha.blogspot.com/2007/07/history-of-financial-market-in-nepal.html
http://anju.page.tl/Commercial-Banking.htm
http://imnepal.com/banking-in-nepal-a-history-of-banking-system-in-nepal/
http://www.investopedia.com/articles/07/banking.asp
http://www.bfr.nrb.org.np/statistics/bank_fina_statistics/Banking_and_Financial_Statis
tics--No_58%20July%202012.pdf
http://www.businessdictionary.com/definition/bank.html

ANNEX I
List of Commercial Banks in Nepal
(Amount in Millions)
S.N.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Name of Banks

Operation

Paid up

Nepal Bank Ltd.

Rastriya Banijya Bank Ltd.
Nabil Bank Ltd.
Nepal Investment Bank Ltd.
Standard Chartered Bank Nepal Ltd.
Himalayan Bank Ltd.
Nepal SBI Bank Ltd.
Nepal Bangladesh Bank Ltd.
Everest Bank Ltd.
Bank of Kathmandu Ltd.
Nepal Credit and Commerce Bank Ltd.
Lumbini Bank Ltd.
Nepal Industrial & Commercial Bank Ltd.
Machhapuchhre Bank Ltd.
Kumari Bank Ltd.
Laxmi Bank Ltd.
Siddhartha Bank Ltd.
Agriculture Development Bank Ltd.
Global IME Bank Ltd.
Citizens Bank International Ltd.
Prime Commercial Bank Ltd
Sunrise Bank Ltd.
Grand Bank Nepal Ltd.
NMB Bank Ltd.
Kist Bank Ltd.
Janata Bank Nepal Ltd.
Mega Bank Nepal Ltd.
Commerz & Trust Bank Nepal Ltd.
Civil Bank Ltd.
Century Commercial Bank Ltd.
Sanima Bank Ltd.

Date (A.D.)
1937/11/15
1966/01/23
1984/07/12
1986/03/09
1987/02/28
1993/01/18
1993/07/07
1994/06/06
1994/10/18
1995/03/12
1996/10/14
1998/07/17
1998/07/21
2000/10/03
2001/04/03
2002/04/03
2002/12/24
1968/01/21
2007/01/02
2007/04/20
2007/09/24
2007/10/12
2008/05/25
2008/06/02
2009/05/07
2010/04/05
2010/07/23
2010/09/20
2010/11/26
2011/03/10
2012/02/15

Capital
1772.83
1172.30
2435.72
3012.92
1610.17
2400.00
2093.99
2009.40
1391.64
1604.19
1400.00
1430.00
1311.55
2478.79
1603.80
1694.08
1619.24
9474.30
2184.86
2101.84
2245.75
2015.00
2000.00
2000.00
2000.00
2000.00
1631.00
1400.00
1200.00
1080.00
2016.00

(Source: NRB)

ANNEX II
Organizational Structure of HBL (New Road Branch)

Branch
Manager
Deputy
Branch
Manager
Credit
Dept. Head

International
Banking
Dept. Head

SubOrdinates

SubOrdinates

Operation
Incharge

Administration
Head

Cash Dept.
Head

Customer
Service
Dept. Head

Remittance
Head

SubOrdinates

SubOrdinates

SubOrdinates

ANNEX III
List of Branches of Himalayan Bank Limited
Inside Valley Branches
1. Battisputali Branch

Outside Valley Branches

1. Baglung Branch

2. Bhaktapur Branch

2. Banepa Branch

3. Card Center

3. Barahabise Branch

4. Chabahil Branch

4. Bhairahawa Branch

5. Corporate Office

5. Bharatpur Branch

6. Dilli Bazar Branch

6. Biratnagar Branch

7. Kalanki Branch

7. Birgunj Branch

8. Kaushaltar Branch

8. Butwal Branch

9. Maharajgunj Branch

9. Damak Branch

10. New Baneshwor Branch

10. Dhading Branch

11. New Road Branch

11. Dhangadi Branch

12. Patan Branch

12. Dharan Branch

13. Satdobato Branch

13. Ghorahi Branch

14. Sorahkhutte Branch

14. Gorkha Branch

15. Swoyambhu Branch

15. Hetauda Branch

16. Teku Branch

16. Itahari Branch

17. Thamel Branch

17. Kawasoti Branch

18. Nepalgunj Branch
19. Palpa Branch
20. Parsa Branch
21. Pokhara Branch
22. Ram Bazaar Branch
23. Tandi Branch
24. Trishuli Branch

ANNEX IV
Members of Boards of Directors
Name
Mr. Manoj B. Shrestha
Mr. Salim Amlani
Mr. Prem P.Khetan
Mr. Prachanda B. Shrestha
Mr. Bijay B. Shrestha
Mr. Radha Krishna Pote
Mr. Sushil Bikram Thapa
Mr. Upendra Keshari Poudyal
Mrs. Ranjana Shrestha
Mr. Surendra Silwal
Ms. Menuka Shrestha
Mr. Sunil Bahadur Thapa
Mr. Himalaya Prasad Siwakoti
Mr. Himalaya S. Rana

Designation
Chairman
First Vice Chairman
Second Vice Chairman
Director
Director
Director
Director
Professional Director
Alternate Director
Alternate Director
Alternate Director
Alternate Director
Alternate Director
Chief Advisor to the Board