CHAPTER 1

Introduction
1.1 Background of the study
Internship has been a wonderful experience for me. It is the medium through which interns can
convert the theoretical knowledge into the practical one. Practical based knowledge is very
necessary to cope up with the external environment. In other words, internship has been a
window to the outer world. It is obvious that only theoretical knowledge is not sufficient to
tackle with real time problems. So to update with the knowledge, practical knowledge is very
necessary. Internship not only gives the ability to think and makes able to give the decision at
real time and situation but also show the way how an office environment is like, how it functions
and what motivates the employee to perform well. "Internship creates professionalism inside
ones mind."
Internship is the period in which interns get the great opportunity to expose their talents, skills
and knowledge to solve the practical problems. By exposing the interns in the organizational
environment they can learn the organizational culture so that it is very convenient for their
placement in the host organization according to their internship performance. This will help them
to build the career and also broaden the knowledge.
The interns should also submit report based on the work performed during the internship period
activities performed in the bank for the fulfillment of degree. So here I am going to prepare the
internship report on overall banking performance of Nepal Bank Limited. To see how much of
contribution NBL has made in the financial sector that effects nations economy through Nepal
Bank Limited (NBL), Nepal comes under developing countries. Financial sector is considered to
be the nucleus of growth model designed for the economic development of the country in which
banking industry plays key role. The banking sector is an integral part of any economy, and plays
a vital role in economic development and prosperity of an economy. The banks ensure the
smooth running of economy my effective mobilization of the fund. A bank today, is not just an
institution where we can deposit our money or take loans from; rather its scope is getting wider
day by day. A banks service today can be seen as a morphing of various financial
products/services, which seems to be of ever more increasing variety. Nepal financial system has
significantly both in terms of business volume and the size of markets. After the establishments
of central bank Nepal Rastra Bank on Baisakh 14, 2013 under NRB Act. 2012; Nepalese
financial system has experience the continuous development. NRB plays vital role in
supervising, promoting and directing the functions of commercial bank activities. After
liberalization policy by the government, the banking industry of Nepal started to rise they
achieved the desired growth. Nepal bank limited is first bank of Nepal and it was incorporated in
1937.
1

Nepal Bank Limited has been playing vital role in development of the banking sector of Nepal.
Generating profit through borrowing and lending is the core function of the commercial bank.
This function helps to uplift the economy of the country by collecting the funds in micro level
and lending in macro level and, mobilizing the funds from surplus level to deficit level. The
success of the bank depends on the maximum collection of and the optimum disbursement of the
fund with minimum risk. For optimum disbursement of the fund with minimum risk bank needs
to have the strong body to control the risk and flow of the loan. In any bank this function is
handled by credit department. The commercial bank also helps in export and import of goods and
services. For this there is a department called Letter of Credit (LC) Department. Banking
sector occupies the major part in the whole world economy.
The mission of BBS program has the adequate attention to equip students with knowledge,
methods and technologies that will aid a person to mould into a human resource capable of
gaining even in unfavorable situations. The internship helps the students to understand banks
culture and environment and develop their own insights towards the banking industry which
leads them to develop various professional qualities and skills.
1.2 Objectives of the study
The main objective of the internship program is to relate the theoretical knowledge with practical
one in various business organizations under the area of specializations. The study also helps to
gain professional experience in the real work environment. The main objectives of enrolling in
the Nepal Bank Ltd. as an intern are as follows: To know the real business environment of
banking sector.
ii) To understand the whole working process of the banking industry.
iii) To get brief idea of all the departments of the bank.
iv) To understand the customers choice, competitors standing and existing regulatory
environment of banking sector.
v) To acquire practical knowledge about banking activities.
x) To find out the problems and prospects of customers of banking sectors.
vii)

To gain working experience.

1.3 Methodology of the Study

In this internship report, the primary as well as secondary information has been used. The
information is collected from interview, websites and annual report of Nepal Bank Limited. The
internship report is based on my own experience that I have faced in Nepal Bank Limited, Head
Office and main branch, New Road, Kathmandu
2

1.4 Organization Selection

I have completed my internship program from Nepal Bank Limited, head office, main branch.
For selecting this organization, I had tried through my personal approach as well as from my
colleges internship Letter. After my regular follow-up, the bank agreed to give me an
opportunity to acquire knowledge/expertise through internship program with effect from
22ndPaush , 2072 to 22ndFalgun , 2072.
1.5 Placement
Regarding the placement during the internship period, I was placed in different department of
Nepal Bank Ltd, New Road Banking Office. So with the reasonable guidance of the members I
started internship from Bills Department, Remittance Department, Customer Service Department
and Credit Department. This eight weeks internship really helped me to develop managerial and
interpersonal skills. I was able to learn the bank culture, work environment and working
procedure of Nepal Bank Ltd, New Road Branch. Eight weeks of time is not sufficient to gather
overall knowledge of Banking, but however these eight weeks of internship had really been
awfully knowledgeable and fruitful for me to gain at least brief understanding of it.
1.6
Duration
The duration of internship period has been defined for eight weeks by Tribhuvan University. So I
have completed two months in Nepal Bank Limited, head office, main branch.
Table 1.1
Duration of Internship
Departments

Weeks

Customer Service
Bills/Clearance
Locker
Credit
Remittance
Front Desk
Pension

1
2
1
1
1
1
1

1.7 Activities Performed in NBL

During the entire internship period, the interne had time to visit different departments like
Remittance, Customer Service Department, Bills Department, Pension, Front desk, Credit and
Locker Department. The activities performed on these departments are as given below.
3

Table 1.2
Activities done in different departments
S. No.
Department
Activities performed
1
Customer service department
Opening and closing accounts, cheque
printing, handling customers queries etc.
2
Bills
Collected interbank cheque, check
scanned as per ECC procedures.
3

Locker

Signature verification, opened lockers,

records of payments from locker, data
entry in excel file etc.
Filing the documents as per the type of
credit provided.

Credit Department

Remittance Department

Preparing debit, credit ,double entry

vouchers, cheque deposits, data entry etc.

Front Desk

statement printing, Handling customers,

checking balance through ABBS

Pension

Signature verification, renewal of

different pattas, handling customers
queries etc

1.8Services Provided by NBL

In the part, Nepal bank limited used to be just an intermediary between the savers and users
of funds. In order words, it used to collect deposit and five loans. However, the horizon of Nepal
bank limited. A service has now expanded. Today it offers varieties of services to its customers.
Nepal Bank limited mainly offers following services.
Deposit
Nepal bank limited accepts various types of deposits from their customers. Depending
upon the nature of the deposit, interest rate is determined. Customers can save current, fixed
and securing deposited accounts.

Loan
NBL also provides loan facilities to needy individual and companies for productive
purpose. Loans are given to the business customers to meet their working capital and long term
requirements .personal customers take loan against theirs fixed deposit and for consumer credit.
Small loan for productive purpose is also given to personal costumers. NBL has also landed to
private sectors. By providing loans to these sectors NBL has been giving hand in the economic
development of the country.

Letter Of Credit
A letter of credit is defined a letter issued by the bank on the behalf of the buyer in
favour of the seller, expressing its definite undertaking to effect payment for the specified
amount, provided the seller(beneficiary) complies with the terms and condition stipulated in the
latter."
Payment by means of letter of credit involves action between two banks, one in the importers
country and other in exporters country.
This service provided by NBL mostly enjoyed by its business customers. But sometimes,
personals customers importing goods and services for personal uses may need this service.
Guarantee
A letter of credit is definite and irrevocable undertaking by the bank on behalf of its
customer to make payment up to a specified sum of money to the beneficiary on demand in case
of default by its customers.
The need of bank guarantee arises in business thus NBL has provided guarantee to their
customers. Naturally, business customers enjoy this service. But some things, personal may also
need a bank guarantee.
Remittance of funds
Sending and receiving funds to/from various places, the necessity of present day
.Remittance service of NBL has benefited both the personal customers NBL has made funds
transferred through various models like draft, telegraph payment, order, swift fax and mail
payment order.
Bills
Business and the personal customers receive the cheques, drafts down on
Banks collects the proceeds of such cheques and pay to customer.

others banks.

Miscellaneous
Safe deposit locker-customers keep valuable (ornaments and documents) in the NBL as
this bank has offered safe deposit locker service to customers.
5

Standing instructions
If the customers demand or give instruction on behalf of the customer, NBL also takes
commission for the services rendered. These are the main services, which are provided by NBL
to its business and personal customers.
NBL was established with the authorized capital or Rs.10 million, which has substantially
increased to Rs.1000 million and issued capital, is Rs.500 million and paid up capital of NBL is
Rs 380.4 million. These have been proposed to increase to 500 million in the up coming years
.From the financial point of view, NBL is considering as the strong bank at present, which is able
to maintain a reserve fund of Rs. 564.3 million. The following is the capital structure of NBL
taken from the Research department:

Table 2 Capital Structure of NBL

At the time of Establishment Amounts at Present
Authorized Capital 10 million
1000 million
Issued Capital
250 million
500 million
Paid Up Capital
842 million
380.4 million
Sources: Planning, Researches & Development Dept.
Following is the glimpse of capital configuration of collected from planning, research and
development department.
Figure 2: Capital Structure of NBL Figure
1000
800
600

A t the time of Establishment

A mount at Present

400
200
0
Authorized C apital

Issued C apital

Paid Up C apital

1.9FUNCTIONS OF NBL
Banks and financial institutions are the organization, which control, manages and
regulates the economic variables of the country. It is an affirming fact that in the developing
country like Nepal , banks and financial institutions play a vital and critical role in being
6

instrumental in a collecting and mobilizing properly otherwise idle, surplus and scattered saving
of public by providing credit facilities to the needy establishments or people to obtain productive
benefits.
The commercial banks act 2031 BS in aspect of its functions defines the commercial
bank as` that banks which exchange money, accepts deposits, grants loans and perform banking
functions. the basic banking functions are acceptance of various types of deposits like current,
savings and fixed Deposits, providing various types of loans, letter of credit, guarantee, safe
locker facility, foreign exchange and serving as an agent of a client.
NBL as any other commercial banks accepts deposits in the form of saving, current and
fixed deposit account and provides various loans with or without considering legal pledge. It
grants short or long term loans in lieu of shares, debenture certificate, land and/or building,
development bonds and other valuables collateral. Besides, it assists in remittance of money; it
transfers money through Travelers Cheques (TC), Credit Card (CC), Draft or Telegraphic
Transfer (TT), etc.
NBL renders the service of purchase discount of bills, hire purchase of goods or vehicles,
issue of Guarantee Letter. It also assists in export and import business by providing facilities of
Letter of credit and Advance Payment. At times, NBL serves as a customer agent of its valued
clients for the payments of salary, bonus, dividend, pension, rent, interest, and other payables. It
also provides the services of underwriting and publication of important notice and information to
both the individual and business customers. NBL makes available of locker box to its clients as
Safe Deposit Vault for the safe keeping of the valuables.
Apart from the banking functions, the Act empowers NBL to do the insurance and
transport business. Furthermore, the main function of NBL which differs from the other
commercial banks is that it is especially empowered by the Act to grant loans to companies
undertaking profitable business associated with agriculture, mining roads, railways, and ropeways and so on.

The following is the department division under Nepal Bank Limited.The following is the
management structure of NBL and all the staffs are arranged in this format
G.Acting. manager
Chief Manager

Deputy G Manager
Account, fund mgmt.
Assistant chief
Computerization & priority sector credit dept

Deputy G manager

managerTraining, planning Research

Development &priority
Management department

Manager

Chief acting Accountant

Chief Manager
Loan, advances
Personal & establishment department
Department in change (saving)Marketing Department &
Department in change (current)
Department in change (fixed)
Board secretary

Acting chief accountant

Account Department

Dept. manager
Inspection &internal auditing dept.

Dept. manager
Assistant
Priority sector
creditmanager
department

Assistant
manager
Dept.
manager
Training department

Assistant manager

Dept. manager
Account dept

Dept. manager
Supervisor
Legal dept

Dept. manager
Establishment department

Head officer
Dept. manager
Dept. manager
Loan recovery Personal department& general manager office office
Loan dept

Assistant
Peon

Dept. manager
Fund management & computerization dept

Objective of Project Work- The objectives to this study are discussed as follows.
It also compares the fixed deposits of NBL with other related banks to know its actual
position in the market.
To know the source and funds of NBL.

1.9.1 General knowledge of Software

In Nepal Bank Limited, Pumori software is used for the daily functions of its banking operation.
Pumori is latest and modern technology that it fast, easy to use and easy to understand.

1.9.2 Limitation
This internship report is prepared under the consideration of confidentiality and internship period
was for the limited period of two months. Due to the limited time frame and due to other Trainee
in bank it was difficult to work in the entire field and sometime we have to stay ideal without
doing anything. The staffs were busy in their work and difficult to guide the intern.

CHAPTER 2
Introduction of the Banking Industry

2.1 World Banking History

Bank is a commercial institution that provides financial services; including issuing money in
various forms, receiving deposits of money, lending money and processing transaction and the
creating of credit. Banks are the financial institution established with objectives to collect and
safeguard peoples money and, then generate profit by lending same collected fund to people
who wants to invest. A bank provides an easy way to pay bills through the maintained account.
Bank provide many services such as accepting various deposits, safeguarding deposits, making
loans, providing means of payment, electronic banking and other services such as travelers
cheques and money orders. Regardless of all these things banking industry plays vital role in the
financial system of a country by mobilizing fund from micro level savers to macro level
investors which help in building the backbone of any financial system with maximum utility. A
bank collects money from those who have it to spare or who are saving it out of their incomes,
and lends money to those who require. In general, a bank is an institution with the following
features:
i) It deals with money; it accepts deposits and advances loans.
ii) It deals with credit; it has the ability to create credit.
iii) It generates profit from the difference between the level of interest it pays for deposits
and other source funds, and level of interest received from lending & investment sectors
iv) It is a commercial institution; it aims at earning profit.
Definition of Bank
Bank is a financial intermediary accepting deposits and granting loans. In fact, a modern bank
performs variety of function that it is difficult to precise and general definition of a bank.
According to Prof. Kinly, A bank is an establishment which makes to individuals such advance
of money as may be required and safely made, and to which individuals entrust money when not
required by them for use.
According to C.R. Crowther, A bank collects money from those who have it to spare or who are
saving it out of their incomes, and it lends this money to those who require it.
2.2 Evolution of banking industry in Nepal
According to the history, it is found that people of our country have been involved in business
and trade since long time ago Through the production of copper utensils had been started during
the 7th century, business relationship could not be established with India since India was involved
10

in the production of copper utensil. However, the craft concerned with copper, wood and metal in
our country did attract the Chinese and the Tibetan a lot, thus resulting in the establishment of
business relationship with China and Tibet.
In 12th century there was silver coin called Dam. Later on in 14 th century TANKADHARI one
is that dealt with the lending money to the public. Its main objective was to earn profit, so they
used to charge high interest rate. To control interest rate TEJARATH ADDA was established in
19th century. It provides loans to the people working in government offices on the basis of the
security and to public on the basis of collateral they deposit. It charges only 5% interest rate per
annum. It only provides loans but does not accept deposit.
In 1980 B.S. Nepal could establish business with countries beyond India as well and first modern
bank Nepal Bank Limited was established in 1994 B.S. Kartik 30 th according to the Nepal Bank
Act 1993. Nepal Bank Limited was established with 51% ownership of Nepal government and
49% of equity participation from private sector. Later on in 2012 B.S. Nepal Rastra Bank was
established with the objectives to maintain the internal external stability. In 1996 A.D.
government established another bank named RastriyaBanijya Bank to make money transaction
easy. Besides that, establishment of Nepal Industrial & Development Corporation in 1959 A.D
.and Agriculture Bank in 1967 A.D. as well as other cooperative societies also started
contributing to the economy and banking tradition in Nepal Grind lays Bank limited established
in 1986 A.D. There are other several commercial banks and in Nepal commercial banks should
be registered under Company Act or Commercial Bank Act under section 12(a) to (w)

2.3 Nepalese Banking Industry

Banking is one of the most sensitive businesses all over the world. Banks play an important role
in the economy and are considered as the backbone of an economy in every country and Nepal is
no exemption. Banks are custodian to the assets of the general masses. The banking sector plays
a significant role in a contemporary world of money and economy.
It influences and facilitates many different but integrated economic activities like resources
mobilization, poverty elimination, production and distribution of public finance.
Banks accept deposits, support the payment system and provide the largest source of funds in the
market. Safe and sound banking is crucial for the financial stability and sustainable development.
Nepal has a special characteristic of bank dominated financial sector. As the domestic capital
market is in the initial stage of development, the banking sector largely dominates the entire
financial sector.
The first conventional bank in Nepal was the Nepal Bank Limited, established in 1937 A.D.
followed by Rastriya Banijya Bank in 1966 A.D. These two banks are the pioneers of the
Nepalese Banking industry. These banks hold the largest network and operate even in remote
11

areas of the country. Rastriya Banijya Bank is fully owned by the Nepal Government while
government is holding forty percent stakes of Nepal Bank Limited. As the financial market was
barred for private investors till the mid 1980s, these two Banks were the only players in the
banking industry. The economic liberalization policy Adopted in the mid 1980s brought about a
surge in the banking industry. A large Number of banks were established and the number
continues to grow even today. The subprime mortgage crisis emerged in the United States during
the year 2007 has exposed Immense challenges to global financial players and regulators.
Consequently, banks and financial institutions experienced banking panics, stock market crashes,
bursting of financial bubbles, currency crisis and sovereign defaults and thereby creating many
challenges to the supervisors and regulators around the globe. Though studies have revealed that
the impact would not be that severe in Nepal, it has necessitated bank and supervisors to assume
precautionary measures particularly on risk management system, portfolio mix, internal control
mechanism and corporate governance.
2.4 Types of Banks
A single institution cant fulfill all the services demanded by the customers. So, different types of
banks emerged in the banking industry concentrating on a special sector. On the basis of their
specialized function bank can be classified as under.
1. Central bank
2. Commercial bank
3. Development bank
4. Saving bank
5. EXIM Bank (Export & Import Bank)
6. other banks:
1

Co- cooperative bank

Housing bank

Merchant bank

2.5 Services rendered by most of the banks

1.
2.
3.
4.
5.
6.
7.
8.

Trade finance
Deposits
Remittance
Clearing / Collection
Loans and Advances
ATM with any branch banking
Safe deposit Vault
SWIFT
12

9. ABBS
10. Fund Transfer
11. 365 Days banking
12. Debit card
13. Auto loan
14. Housing loan
15. Education loan
16. MahilaBachat
17. Pension Distribution
18. Gold Loan
19. Fixed deposit loan.
20. Travelers Check
21. E Banking
22.SMS banking.

2.6 List of Commercial Banks in Nepal

1
2
3
4
5
6
7
8
9
10

The lists of commercial banks operating presently as issued by NRB are listed in the table
below:
NAMES OF THE BANK
OPERATION
HEAD OFFICE
DATE(A.D.)
Nepal Bank Limited
15/11/1937
Dharmapath, Ktm
RastriyaBanijya Bank
23/01/1966
Singh Durbar Plaza, Ktm
Agriculture Development Bank Ltd.
2/01/1968
Kathmandu
NABIL Bank Limited
16/07/1984
Kamaladi, Ktm
Nepal Investment Bank Limited
27/02/1986
Durbar Marg, Ktm
Standard Chartered Bank Nepal Limited
30/01/1987
New Baneshwor, Ktm
Himalayan Bank Limited
18/01/1993
Thamel, Ktm
Nepal SBI Bank Limited
7/07/1993
Hattisar, Ktm
Nepal Bangladesh Bank Limited
5/06/1993
New Baneshwor, Ktm
Everest Bank Limited
18/10/1994
Lazimpat, Ktm

11
12

Bank of Kathmandu Limited

Nepal Credit and commerce Bank limited

13
14
15

NMB Bank Limited

Lumbini Bank Limited
Nepal Industrial & Commercial
Limited
Machhapuchhre Bank Limited
Kumari Bank Limited
Development Credit Bank Limited
Laxmi Bank Limited

S.N.

16
17
18
19

12/03/1995
14/10/1996

Kamaladi, Ktm
Siddharthanagar, Rupendehi.

26/11/1996
17/07/1998
Bank 21/07/1998

Babarmahal, Ktm
Narayangadh, Chitwan.
Biratnagar, Morang.

3/10/2000
3/04/2001
23/01/2001
3/04/2002

Pokhara, Kaski.
Kathmandu
Kamaladi, Kathmandu.
Birjung, Parsa.
13

20
21
22
23
24
25
26

Siddhartha Bank Limited

Global Bank Limited
Citizen Bank International Limited
Prime Bank Limited
Sunrise Bank Limited
Bank Of Asia Nepal Limited
Kist bank

24/12/2002
2/01/2007
21/06/2007
24/09/2007
12/10/2007
12/10/2007
07/05/2010

Kathmandu
Birjung, Parsa.
Kathmandu
Kathmandu
Kathmandu
Kathmandu
Anamnagar,Ktm

27
28
29
30

Janata bank
Mega bank
Commerz and trust bank ltd.
Centuary commercial bank ltd.

28/04/2010
23/07/2010
2010
23/01/2011

New Baneshwor, Ktm

Kantipath, Ktm
Kamaladi, Ktm
Putalisadak, Kathmandu

CHAPTER 3
INTRODUCTION OF NEPAL BANK LIMITED

3.1 Introduction of Organization

Nepalbank limited the first bank of Nepal was established in November 15, 1937 A.D. (kartik 30,
1994).This marked the beginning of an era of formal banking in Nepal until the all monetary
traction were carried out by the private dealers, merchants and traders.
The total deposit for the first year was Nrs 17, 02,025 where as current deposits was about Nrs
12, 98,898 fixed was Nrs 3,88,964 and saving was Nrs 14,163. Loan disbursed and outstanding
at the end of the first year was NRs 1,985,000.
It was formed under the principal of joint venture (joint venture between government and
general public) NBLs authorized capital was Rs 10 million and issued capital Rs 25 million of
which paid up capital was Rs842 thousand and 10 shareholder. The bank has been providing
banking through its branch office in the different geographical location of the country. The paid
up capital of NBL is Rs. 380,382,600
3.2 Vision
TO remain the leading financial institution of the county
3.3 Mission
Nepal bank limited seeks to provide an environment within which the bank can bring unique
financial value and services to all customers. It will be a sound institution where depositors
continue to have faith in the security of their funds and receive reasonable return; borrowers are
assured of appropriate credit facilities at reasonable price; other service- seeker receive prompt
14

and attentive service at reasonable cost; employees are paid adequate compensation with
professional career growth opportunities and stockholder receive satisfactory return for their
investment.
3.4 Values
At Nepal Bank Limited, it is believed that banking should be based on:
Respect, service and safety for the customers we serve.
Respect, reward and opportunity for the people with whom we work.
Respect, cooperation and support for the economic community of Nepal.
3.5 Objective of NBL
Continue to maintain leading share of banking sector with significant presence in all
major geographical areas in the country.

Provide competitive and customers oriented banking services to all customer through
competent and professional staff.

Reclaim leadership within the national financial community.

3.6 Share ownership

The table below depicts the share ownership of NBL; major ownership of the bank is in
the hand of the local people. Shareholding pattern of the different parties in the banks
share capital in shown in the table:
Share ownership in % and capital
S.N
1
2
3
4
5

Ownership
Government of Nepal
A class financial instution
NRB licensed financial instution
Other institution
General public

percentage
40.49
4.92
3.42
0.52
49.94

Other

0.71

3.7 Services provided by NBL

NBL provide different type of services for the customer which are as follow:
15

I.

Safe Deposit Vault

The Best Protection For your most Important Valuables." Customers valuables are safely
stored in another location other than their homes or business...the SAFEST PROTECTION
from fire and theft. Nepal Bank Limited offers customer safe deposit vault to store items that
would cause customer to say "if I lose this, I'm in deep trouble." This means important papers
like insurance policies, family records such as birth certificates, deeds, titles, mortgages, leases,
contract, bonds, and certificates of deposit.
Other items include jewels, medals, rare stamps and negatives for important photos in case of
fire or theft.
II.
ABBS (ANY BRANCH BANKING SERVICES)

An ABB charge within the valley is absolutely free and nominal for inter-regional
transfer.

Service is available in the largest network of the country.

Limitless cash transfer

III.

Web Remit

'NBL Remit' - an online/internet based Remittance Service for the purpose of facilitating to
transfer the earnings of Nepalese and Nepalese Expatriates in foreign countries with the help of
available NBL agents. Along with inward remittance from foreign countries, NBL-remit is
powered by domestic money transfer facility through all of the bank's branches throughout the
country with very minimal charge.
NBL Remit service is based on online data transfer system and it is instant enough, efficient and
very much secure. For the authentication purpose, SECRET KEY is generated on the system,
which is required by the customer while being paid. Remittance facility is available both for
instant cash payment and credit to the beneficiary personal account. Now the account transfer
facilities can be availed within NBL branches.NBL Remit Service is also operated by agents of
Nepal Bank who exist in different locations of National and International Topography. At this
time, NBL has started this service from Arabian and Parsian Gulf mainly from QATAR where
NBL has an established drawing arrangement with two major exchange houses, which are:

Eastern Exchange Est. Doha, Qatar

Arabian Exchange Co. W.L.L.

How to send money?

16

Go to the nearest NBL remitting agent.

Ask for 'Send Request Form'

Fill the personal information and the beneficiary information as requested.

In case of account transfer please state the name of bank, its branch and the account
number of beneficiary in the specified location. The account details must be accurate else the
fund shall be pending.

Fill the amount for remittance.

If cash transfer you are provided the secrete key else not.

Convey the secrete key to the beneficiary securely and guide him/her to receive the
remitted amount from specific branch/agent of NBl remit product.

All remittance into Nepal through Nepal Bank Limited is quick, dependable and cheap because
the beneficiary anywhere in the Nepal can receive the money without needing services of other
banks because Nepal Bank Ltd has largest network of branches in Nepal in important places.
Outward Remittance:
1. SWIFT: Through this System NBL can cater the need of customer to remit the fund
anywhere in the world, denominated in major currencies.
2. Draft: NBL have draft drawing arrangement made with our correspondent banks in many
countries of the world where Nepalese individual and institution need to transfer fund due
to any reason.
3. TT and Mail Transfer: Because of NBL international banking relationship the bank can
handle the outward remittance business though this method.
4. Remittance to India: NBL can cater the need of business community and individuals to
transfer the fund denominated in Indian Rupee In India very efficiently and at the
minimum of commission compared to any bank in the Nepal.

IV.

SMS BANKING SERVICE

Nepal Bank Limited presents SMS (Short Message Service) Banking service to its valuable
Customers. NBL is providing the service of SMS Banking from all computerized (44) branches.
In SMS Banking service, customers can get their account information easily by sending SMS to
1994. NBL SMS banking service having the following features.
17

A. Secure transaction with PIN code

B. Instant Balance Information
C. Last three transactions with current Balance
D. PIN code changing facility
E. Latest Exchange rate of Foreign currency
F. Account Stop Facility
G. Cheque Book print request
H. Account statement print request
NBL SMS banking service also provides the extra services to its valuable customer's such as
New Product information of bank, Loan alert messages and cash withdrawal notification on
customer's request.
V. E-BANKING
Now NBL is just a click away. Wherever one goes, one can access your account in
Nepal Bank Limited on your desktop. NBL has Internet Banking with wide coverage of
services in order to facilitate their valuable customers. Balance check, cheque stop,
cheque issue, statement print etcaresome of the facilities under this service.
Procedures to create NBL Internet Banking Account:

Download NBL Internet Form

Fill up the form completely

Submit
the
form
into
your
account
holding
NBL
branch.
When bank receive the form, customer account will be created and Internet Banking User ID
and Password will be mailed to the provided E-mail address with appropriate guidelines.
3.8 Network Overview
The table below shows the number of different branches of NBL located all over the country.
Table 3.5
Branches of NBL
Region wise branches
No of Branches
Kathmandu Region

29
18

Biratnagar Region

32

Birgunj Region

23

Pokhara Region

21

Nepalgunj Region

18

Total no of Branches

123

Source: www.nepalbank.com.np
3.9 Board of Directors:
The bank is under the control of Central Bank of Nepal, Nepal Rastra Bank (NRB).
NRB has appointed a five members management committee. This management committee
performs as the board of director of the bank.
3.9.1 Management Team
The bank is running under the leadership of Nepal Rastra Bank (NRB) appointed three
management team under the leadership of NRB director, Mr.Maheshwor Lal Shrestha.
3.9.2Organization

Structure

of

NBL

19

20

3.9.3 PROBLEMS OF BANK IN NEPAL

Large number of widely operating bank gives wide range of services but through the changes in
the world, the banking system are changing in the fastest way and they are facing more problem
then in the past time. Major problems of Nepalese banking system are as follows:
1.

Lack of profitability /low profitability:Nowadays big banks are also facing the problem of profitability or low
profitability. Newly incorporated banks are also facing this problem.

2.

Less Capital adequacy:Commercial banks are acting as custodian of public money and are the main
financial institution however they couldnt maintain adequate capital as prescribed
by the NRB.

3.

Non-performing Assets:Non-performing assets are also major problems. Governments commercial banks
are holding more non-performing assets.

4.

Government interference:In the commercial bank under the control of government, there is an unnecessary
intervenes with their functioning. Change in the government has direct link to the
management of the bank. So the management is as the puppet of the government.

5.

Wrong policies of NRB:-

Some policies of NRBs are responsible for the problem of banking sector. Such
as branch expansion policy, Directive credit policy, LIC transactions loan classification
and management.
6.
Lack of research and development:Banks are not serious towards research. They are unable to their profitable areas.
Sometimes they have excess liquidity while sometimes deficit so banks are
required to set up research and development department to make future activities.
7. Other problems: Problems of technology transfer,
Lack of banks in remote areas,
Lack of transparency,
21

 Rural credit system,

Interest rate and others.
Thus, for the sound and healthy growth of banking in Nepal, the banking sector should overcome
the above mentioned problems.

3.9.4 SWOT analysis

The strength, weakness, opportunities and threats of NBL are as follows:
Strength
NBL is the oldest commercial bank thus it has serving the nation from 1973, so
manpower is very high, so that they have their working stamina and potential.
Being the oldest bank, it has also many branches all over the countries as per the
ultimatum of the public.
Amount deposited under the fixed deposit account is increasing day by day which is
very superior indication for bank because it is a stable source of fund.
Weakness
Thereis a problem of over staffing in the head office as well as in the branches so that
it must reduce its staff as per the condition of works.
Though the branches are being ongoing but the performances arrangement of the each
branch are not approximately assess seriously.
Because of the highest interest rate paid on deposit, the interest rate on credit it to be
taken in high thus it affect on the condition of the investment.
Opportunity
Numerous people devote their funds in the NBL due to the various attractive
banking policies, which is adopted by the bank i.e. higher interest rate, computer
based services and other various schemes.
Being the under developing country like Nepal, Nepalese people get the
opportunity to show their skills capability and talents through the different jobs.
As the large sum of amount is collected through different deposits, it has
opportunities to invest in various long term investments.

Threat
22

The condition of NBL is declining day by day due to the interference and
formulating politics to the bureaucratic of government.
The latest issue is that to improve the condition of the bank. Nepals government
is going to give in contract to the foreigners.
Financial and disciplinary and corruption may be rise.

3.10. Study Result

By the study, I found
1. Highest amount is collected in saving deposit and second in fixed deposit.
2. Loans and advances exceeded the investment.
3. Government provides loan on various sectors. Among which, it provides highest loan for
Cottage industry and then for agriculture.
4. Interest rate is deducted in comparison to the previous year. The deposit value has not
relatively declined.
5. Current position of deposit is unsatisfactory due to reduction of interest rate
on deposit.

23

CHAPTER 4
Analysis of Performed Departments
During the internship period, the internee had performed a range of activities in various
departments which helped to widen their knowledge about banking activities and practices.
Internee performed various activities at different departments: customer service, remittance, bills,
front desk, pension, credit, and locker department. The activities performed at each of these
departments are explained below:
4.1 Customer Service Department:
Customer service the front desk of any organization. It provides all necessary information to the
customers. For any organization, it is the main and most important department which needs to
deal with the customer more than any department in the bank. It is one of the busiest departments
in the bank and it is the place which makes an early impression to the clients. It is the place
where customers make first contact with the clients. The image and reputation of the bank
depends upon the effective functioning of this department. It is the first place where the
customers first get the service. As different activities such as, opening of new accounts of
customers, closing an existing account, issuing cheques books, balance inquiry and providing
statements, issuing debit cards, etc. are performed.
It is very important to know that the highly satisfied customer becomes loyal and buys the
organizations new products, pays less attention to the competing branch and is less sensitive to
price. Having a significant number of this kind of customers is only possible through the efficient
functioning of CSD of any organization. It would then not be inappropriate to say that this
department is the key to success of any organization.
4.2MAJOR FUNCTIONS CARRIED UNDER CSD:
This department is involved in various activities from opening an account to closing, issuing
ATMs, balance certificates, balance statement, etc. The various functions of this department are
described below:1. Account opening:Account opening is the major and most frequently done activities in this department. On an
average, 12 to 15 accounts are opened in a day. In NBL, account can be opened with the
fulfillment of the required documents which differs with different types of account. The customer
has to go through various processes and follow the following procedures to open new account.
The procedures are mentioned as follows: Provide the new account opening form to the customers who are willing to open an
account in the bank.
All columns in the account opening forms are to be filled in proper manner by the
customers themselves.
24

 The account holder must sign his/her own signature in front or the specified principal
officer of the bank.
To open an account the most important thing is the Citizenship Certificate photocopy or
Passport photocopy and two passports sized photos of the applicant.
Evaluating the account opening form by the concerned staffs and checking as per the
requirements.
After the form has been verified, assigned an account number to the account holder and
then asked for the deposit to the customer in Cash Department.
After the client deposits money in his account, the client is then the member of the bank
and the account opening procedure is completed.
2. Account Closing:It is the important task done under account operation on an average, about 2 or 3 accounts
closing in a day. People close their accounts because of their own reasons. Customers have to go
through various processes and follow procedures to close the existing accounts. The procedures
are mentioned as follows:
Customer who is willing to close their account must fill up the closing form specifying
the reason for closing.
After submission of the form to CSD, signature is verified by General supervisor.
The client is then asked to return all his account related belongings like ATM cards and
the cheques books after a while.
Then the account of the applicant is closed with certain charge.
Finally, the client is asked to withdraw the remaining balance from account.
3. Distribution activities:Another activity performed in the CSD is the distribution of various requested documents to the
clients. Various documents that a client can get from this department on the request are:
a. Balance Certificate
b. Balance Statement
c. Cheques Books
d. ATM Cards

25

3.1Balance Certificate Distribution:

Everyday around four to five customers come for the request of balance certificate to know the
status of their accounts. Customers need balance certificate for various purpose such as for Visa
purpose, for various kinds of registration, etc. the bank provides the certificate to only the
account holder after the request form has been filled up and submitted to CSD.
3.2 Balance Statement Distribution:
One of the frequently done activities of the CSD in distribution section includes distribution of
balance statement. Every account holder must collect their statement from the bank
3.3 Cheques Book Distribution:
New account holder and especially one holding current account in the bank, requests for the
cheques book quite often. Everyday about ten to fifteen customers request for new cheques book.
The client has to fill up the cheques request slip available in old cheques book. After the
submission of the request slip, signature is verified and then the cheques book is provided to the
requester the next day.
3.4 Other functions carried under CSD:
The CSD of any bank makes possible direct link between the customers and the bank officers.
So, the professional merit, competency, flexibility, determination and dedication are the core
resource of NBL. It believes in building client oriented modern banking. So, customer
satisfaction is the primary goal of CSD. In the above part, it has discussed about the main
functions of CSD, the other activities of CSD are discussed below:
1) Good For Payment Request:
Good for payment is not so much familiar to many banks. But NBL provides these
services to its regular client. This consists of holding of certain amount of the partys
account to the requested account with the recommendation of the party for the certain
duration of time. It will help both the client as well as the bank. Bank can invest the
amount for the holding period and the party will charge interest to the account holder. To
default risk, the bank will provide counter cheques to the requested account holder (with
amount of hold) which will be already issued but will be paid cash only when the
duration matures.
2) Record Keeping:
The record keeping is the day to day task of CSD. The record should be kept for all the
transaction such as cheques requisition, cheques issued record, account opening record,
account closing record, balance certificate record etc.
3) Client Queries:
There will be various queries of the regular and new client. All this queries should be
handled by CSD with well manner. Any internal information of the account holder to
26

unknown person should not be given.

4) Stop Cheques:
Sometimes, due to misplacing of the cheques by the clients, immediate stoppage of such
cheques should be made before withdrawal by the third party. So, for stopping the
cheques one has to inform to the CSD.
Record Keeping
The record keeping is the day to day task of CSD. The record should be kept for all the
transaction such as cheque requisition, cheque issued record, account opening record, account
closing record, etc.
4.3 LEARNING
Procedures for form's fulfillment of new account, closing a/c and or for ATM card.

About the requirements of documents needed for opening, closing and applying for
ATM card.

Knew how balance of customers is checked and how balance statement is printed.

Knew how a/c verification from old a/c number is done and how printing of checks is
done.

To use scanner for scanning a/c holders photo, a/c number, phone number and
authorized signature.

In developing good interpersonal skill, patience, requirement of displayed emotion, and

harmonious relationship with customers.

4.4 Bills/Clearance Department

In this department customers bring checks of different bank and those checks are processed in
order to deposit the amount to customers account in different other branches or the same branch.
The clearing department is responsible for the clearing of all checks that the bank receives daily
and the different types of clearing checks that come in the bank are:
Inward Clearing
Outward Clearing
Outward Bills for Collection
A. Inward Clearing
27

Inward clearing takes place when a KBO account holder draws a check in favor of a Non- NBL
account holder. The process for inward clearing is as follows:
1 Checks of NBL are received by the operations department electronically sent by
scanning the checks by other banks through ECC(Electronic Check Clearance)
2 The bank officer verifies all particulars from the instruments and the system for
sufficient balance etc. and approves the check. If any fault is found, then the officer
will mark the checks as a return, stating the reasons with them.
3 If no fault is found, then the officer will post these checks in the system by debiting
the customer account.
4 The particular of the returned checks are entered in the O/W return of inward
clearing register and returned.
B. Outward Clearing
Checks drawn by Non-NBL customers in favor of NBL customer and deposited at same Branch
are known as outward clearing checks. The process for outward clearing is as follows:
1 Cheques are received by the bills department of NBL.
2 NBL stamps, endorsement stamps and ECC (Electronic Check Clearance) stamps are affixed
along with endorsees signature.
3 Checks are then sent to related banks by scanning and editing the information as per ECC
rules.
4 For those institutions which doesnt have the ECC model of check clearing, traditional
manual way of check clearance is performed as :

Checks received by bills department are sent to Nepal Rastra Bank for clearance and checks are
presented to related bank.
Customer in favor of whom the check is drawn is credited after approval from the related bank.
If any check returns the next days as a returned, the posted entries are reversed and the check is
returned to the customer who presented it and is recorded in the check return register.

C. Outward Bills for Collections

There are some checks that are drawn by a Non NBL account that is outside the city area in favor of NBL
account holders and thus are treated as OBCs. The process for clearing of the OBCs is as follows:
Cheques received by NBL.
The officer affixes the OBC stamp on the checks and writes its individual number from the OBC
register.
Entries of all OBC checks are written in an OBC register.
An OBC letter is printed, which shows the check numbers, the branch drawn on and amount.
Original checks are attached to these letter and sent to the main NBL branch in that area by courier
When that area branch clears the amount from the Non-NBL branch, it sends an Inter Branch Credit
Advice (IBCA) to NBL and the officer at the branch credits the customer account with that amount.

28

4.5 Locker Department

The Locker Department or Safe Deposit Vault ensures the safety and security of valuables of customers.
There are 8176 applicants using locker services at present; referring to data of May 8 2015. There are 9
types of locker depending on the size. An annual charge has to be paid in advance to use the locker
service. The locker charge ranges from Rs. 2,000 to Rs. 6,400 per annum. The locker demand of NBL has
rose due to current earthquake. During the internees placement in Locker Department, the following
activities were performed:
A. Verifying Applicants
In locker department, the intern had to check on the customers entry and exit, to check whether the
responsible locker owner has come to take their belongings or not. Moreover we had to check on their
code to make sure of the liable customer. The applicants needed to fill up a form with signature specimen
which was tallied with their application document of information. After signature verification they need to
sign these application documents with current date and time.
B. Locker Charges
There were two ways to pay for locker services. First is to pay by cash depending on the locker size and
second is to deduct amount from customers saving account. The NBL staffs were responsible for listing
customers who paid with cash and who did not. The cash payments were recorded directly into ledger
entries with reference as their payment receipt. The charge deduction from saving account required
checking the sufficiency of their balance.
Procedure of deducting locker charge from saving account
The intern was given responsibility to deduct the locker charge from their saving account. For that the
intern had to open NEWTON with code 250 and check for balance. Those accounts which had enough
balance were copied in a voucher heading with account number, name, locker number, type of locker and
date. Two different dates (date of renewal and payment expire date) were noted down.
Once again the intern had to open NEWTON with code 20270 where they had to enter account number,
locker charge in debit section and total amount with code 45010100 in credit section and then send button
was clicked and txt number was noted down.
C. Making Ledger Entries
The ledger entries after cash payment and amount deduction were posted into a ledger book. The entry
requires writing locker number, locker holder name, type of locker based on size, charged amount, date of
renewal, payment date and payment expiry date. The amounts deducted from saving account are first
listed into a statement before making ledger entries.
D. Making Data entries
The information about the lockers were entered into excel files for easy access which included the
information about the locker holders name, address(both permanent and current), contact number,
nominee, authorized person, application number, locker number, key number, code, registration date, last

29

charge paid date, and expiry date.

4.6 Credit Department

This department looks over the various kinds of credits or loans taken from the banks. It ensures that
thorough investigation is undertaken of the client who wishes to take credit from the bank. The bank
provides consumer loan such as home, auto, term loan, and overdraft loan. It also provides hypothecation
and consortium loan. During my time in this department, I maintained the files according to their
respective topics and got to learn about different types of loan provided by NBL.
4.7 Remittance Department
Remittance means a sum of money sent in payment for something. This department deals with either the
transfer of money from one bank to other bank or from one branch to another branch for their customers.
Remittance is important tool and Nepal Bank Limited holds a key advantage due to its number of
branches. Remittances are received or send within the country or from foreign countries. Nepal Bank has
strategic alliances with foreign companies like Eastern Exchange Est. Doha, Qatar, Arabian Exchange Co.
W.L.L. etc.
NBL offers the following forms of remittances:
A. WEB remittance
B. Demand Draft remittance
A. Web Remittance
In the web there is generally inward and outward department. In inward department once the payment
comes from the other branch then it is checked and if the stated person in the web is present there then he
is asked to fill up a form and show his/her citizenship card. And a photocopy of it is kept and the record is
made in the computer then the amount is transferred to the respective persons account and is paid cash if
the customer does not possess any account in NBL.
In outward department the customer fills up the form and deposits the money at the counter and the
money is send to the receiver through web by feeding up the information with the help of form. For the
authentication purpose, secret key is generated on the system then the depositor is given 8 digit secret key
which he needs to inform the receiver and if the receiver has his account then he can take his citizenship
card and get the money transferred to his/her account.
B. Demand Draft Remittance
An unconventional order in writing-signed by a person, usually the exporter, and addressed to the
importer-ordering the importer or the importer's agent to pay, on demand (sight draft) or at a fixed future
date (time draft) the amount specified on the face of the draft.
Outward Drafts
When a person or a company wants to make a draft on the exporter company then at first company needs
to present Performa invoice to the bank and on the basis of the invoice the bank prepares the draft on
behalf of the customer to the third party.

30

Inward Drafts
Nepal Bank limited has system of honoring drafts drawn on us by many banks denominated in major
currencies such as USD and Euro.
LEARNING

How to fill up the forms of web, fax, and draft.

How to enter the web information in web using s/w of NBL i.e. Web Remit.

Learnt to check if the a/c number is right or wrong using NBL s/w i.e. NEWTON.

Learnt to prepare schedules registers, and journals.

Learnt briefly about SWIFT procedure for payment and sending which included major parts like
SWIFT code, reference number, beneficiary's name, payee and payer bank's name.

Learnt the processes involved in backward after a consumer deposits the money or withdraws the
money from remittance i.e. debit and credit process.

4.8 Front Desk

It was previously a part of customer service department. It is now given a separate space in Kathmandu
Banking Office of Nepal Bank Limited. It is a place where customer inquiries are responded. During the
internees placement in Front Desk, the following activities were performed.
A. Statement Printing
The intern was given the responsibility to print statements of customer since the very first day. The front
desk computer uses Newton Software System to print Balance Statements. The Newton System operates
with teller id, branch code and password. The employee of Nepal Bank Limited is responsible for starting
the system. Printing Statement is supported by Newton code 1450. Once the code number is entered a
framework is obtained. The statement printing requires feeding in account number of respective
customers and the transaction date. The respective customers must specify the transaction date. Once
customer account number and transaction dates are entered the information is forwarded to IT
department. They verify the account number and send confirmation message if the account number is
correct. Thus, printing is done by hitting the PRINT button. The intern used to print 100-200 statements
per day for six days in a row. The customers using this service are registered under Kathmandu banking
Office of Nepal Bank Limited.
B. Queries Handled
This was also an important task in the front desk. The basic queries of customer were balance inquiry and
account number verification. The balance inquiry of customers allows them to know their current balance
in their accounts. There are two ways to handle balance inquiry; the Newton system and ABBS (Any
Branch Banking System)/ Pumori System. The Newton system responds to customers registered under
KBO and ABBS system supports customers registered under other branches. The code for balance inquiry

31

under Newton system is 250. The code input gives a framework where entering customers account
number shows balance in their respective account.
Pumori system is a web-browser dependent system; instead of code you select withdrawal option from
the menu bar, enter account number and press search. Thus, balance amount is obtained. The other query
was verifying account number. This service is only available to KBO customers. The intern used the same
framework form code 250 for this task. The intern was supervised to search account number using
customer name. When account number appears tally signature and photo of the customer asking for
account number verification.
Some other queries that they responded to were about NBLs swift code, interest rate on deposits, interest
on loan, direction to other department, banking hours, evening counters and ATM outlets. They were
under the supervision of NBL staff and she helped them in handling queries and responding to customers.
4.9 Pension Department
A pension is a fixed sum to be paid regularly to a person, typically following retirement from service.
There are many different types of pensions, including defined benefit plans, defined contribution plans, as
well as several others.
Different product codes are there like 1010 for civil servants, 1020 for teachers, 1030 for defense and
1040 for NBL employees. Each people have their unique PATTA NO which is entered as soon as it is
entered, data relating to employee like their name, post, pension amount, tax amount etc. is shown. The
voucher is printed and the bill along with the pattas is signed by the department head. Then the retired
people take that voucher to the cash department to get the money
A. Renewed of Pension PATTA
For the renewal of pension PATTA, a form has to be filled which contained Date, PATTA no, Name of
PATTA holder, along with his/her pension account number at the top of the form. The form was divided
into two sections, at the left side of the form they had to fill the name of the incharge of the pension
department, his post, his staff number, date, bank code along with pension stamp. At the right side they
had to fill name of PATTA holder, their address, finger prints and signature. Lastly they had to present the
form to the in-charge for their verification.
B. Helped to Fill Cheques
If the pension PATTA were renewed on time then the monthly pension amount goes directly to their
pension account. Those parties who had pension account brought cheque book along with them and
withdrew cash from cheque. The old people who were unable to fill the cheque for them the intern
personally wrote their cheques with the amount they desire to withdraw. After that they took their
signature on the cheque and presented to the staff for verification.
To open a Pension Account

Open your Newton Account

Make display 61100 screen to open new pension saving account

-

61100 for opening account

Input the following details:

32

Transaction type individual

Customer ID type Citizenship number

Character Code 5221= Individual-Resident

ID Number Write (type) the pension patta number of the pension holders.

After pension patta number type(input) the product code of the pension patta.

After completing all above procedure click the send option of your screen which is shown at below
into the right corner.

OR, press F9 which automatically commands send option.

After this commands your display will get new screen to fill up customers details.

Necessary to fill the customers details

Customers full name

Permanent address along with contact number ( preferred mobile number)

Job code- 1899-others

Introducers Name1 and Name2 (as per pension patta)

Gender

National code- country(Nepal i.e. Np)

After finishing all these information press the send option or F9 key.

Now your screen will display one notice message board. Click at OK in that message board or Press
ENTER key.
4.9.1 Problem Faced During Internship
While carrying out the task assigned by the supervisor, the internee faced different types of problems.
They are as follows:
Though the instructions and required documents are clearly explained in the account opening form, even
then customers ask those for time to time and reasons for extra documents that are already stated in back
side of the form. So, it is tough to give them each and every guideline on filling different types of form as
well.
Some of the customer disagrees to accept the charges for account closing and make argument on this
matter for long time. So, it becomes difficult to convince them about the banks charges.
When the customers lost their cheque book and request for new one, in this case it is difficult to find out
all the used and unused cheque, valid signature and account number from their record on the computer
carefully.
When the customer doesnt use their account for 1 year, then they have to fill the KYC form. At that time
customer is required to fill all the form along with small map of temporary address. But some customer
argues like saying why we need to fill this form. It is very difficult to convince them about KYC form.

33

When the customers take ATM for the first time, at that time also internees have to say one thing for many
times.
4.9.2 Problem Solved in Internship
During the internship period internee faced problem because internee was new to the organization. The
following are the problem solved during the internship period.
Whenever the customers come up with their problems, internee has to be polite and help customers to fill
the form with a smiley face.
The aim of the internee is to serve customer with smile. If customers refuse to give the charge for account
closing, it is the responsibility of internee to explain the rules and norms of the bank.
Whenever the customers cheque book is lost, internee is unaware about the right and accurate
information on the subject matter. So internee has to consult with their senior staff to give the information
to customers.
Know Your Customer (KYC) is customer identification process. The main objective of KYC is to enable
bank to have positive identification of its customer. If the customer argue to fill the form then internee are
required to explain the importance of KYC so that they can safeguard their hard earning money.
Although the procedure to use ATM is explained near the ATM machine, some customers are unaware to
use. So, internee needs to explain them practically touse ATM.

CHAPTER 5
Conclusion and recommendation
5.1 Conclusion
The economy of the country is booming and with the investment favorable policies and their smooth
implementation, the role of banks in todays economy have become an important one. The banking
industry is also reaping the fruits of this economic boom by growing rapidly over the past few years.
There are a number of banks opening in the economy with foreign investments coming into the banking
sector.
Nepal bank Limited culture is built on a set of core values: client focus, teamwork, meritocracy, ethic and
integrity, pioneering. The company is committed to its clients best interests as well as preserving a good
relationship by defining realistic objectives.
Since the establishment of Nepal bank Limited, it has aimed to become the leading bank of Nepal by
providing outstanding services. The services that Nepal bank Limited provides have a great market
penetration not only because of their features but also the profit and markup rates that they charge. Also
the products that Nepal bank Limited provides cater to sector economy.
Furthermore, as the bank is growing, new and more energetic employees are entering which is sure to
invigorate the performance of the bank.
Lastly, to become the leading bank of Nepal, Nepal bank Limited has to benchmark its services to its
major competitors in the industry or the market leader in the industry and provide a continuous mean of
improvement in its existing products and services, while introducing new ones to the industry.
As per the rules and regulation of Nepal Bank Ltd, We interns have to persuade atleast 10 new customers

34

to open an account in the Bank. So, I have completed this task. The following are those new customers
which I have opened. So, the details of those new customers are as follows:

S.N

Name of Account Holder

Account Number

1
2
3
4
5
6
7
8
9
10

ShovaPokharel(Khakural)
AsmaTamang
Miss. Punam Shah
RajendraRana
Krishna Kumar Shrestha
MeeraShrestha
Maya Devi Dhakal
RojinaBudhathoki
NirLaxmiMaharjan

00201101134737000001
00201101134829000001
00201101135207000001
00201001135222000001
00201001135291000001
00201101135345000001
00201101135406000001
00201101134777000001
00201101134873000001
00201101134929000001

NaniShovaMaharjan
5.2 Recommendation

On the basis of the analysis of the information and material used to prepare this report, I would like to
recommend some point for NEPAL BANK LIMITED:
NBL uses traditional filing methods in many cases still now. It can reduce its time and cost
consumed in filing and indexing with the use of modern filing methods.
If the bank increases its promotional and marketing activities, it can create more customer
attraction towards the bank.
Skill development and training programs for the employees should be conducted
Introducing the concept of the teamwork can change the behavior of the employees
No one is fully perfect on any sector they know. They do their jobs very well even though there
may some problems, mistakes. NBL also do their work very well in these years.
1. Interest rate is deducted in comparison to the previous year. So interest rate should be increased to
encourage deposits.
2. The loan interest rate is high which discourages investment. NBL should bring such schemes to
control these situations that which will benefit both the parties including NBL itself.
3. There is problem of overstaffing in head office as well as in its branches due to which it is
reducing companys profit. So it must reduce the number of staff as per the condition of works.
4. It is Commercial Bank but it should not see itself for the medium for profit. It should see it self as
a responsible member of the country who can contribute to the development of the country.
5. The new branches should be opened at remote areas where there is no access of banking facilities
so that the customers should have easy access of banking.

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6. NBL should gain idea foreign services in order to provide the maximum facilities to the
customers.
7. There are so many Banks and their branches are opened in so many places of the country which
provides the similar facilities as NBL does. So, NBL should innovate and develop different and
unidentical schemes for the customers to gain their satisfaction and should also be beneficial for
the Bank too.

5.3. LESSON LEARNT:

Internship is basically a training package the spikes ones banking transaction knowledge. It
develops overall personality, confidence level and knowledge of an individual to compete in the
challenging business world. Internship is simply polishing an individuals talent and preparing one to
introduce in the world of business.Intership is not for making one practical at work, but it also develops
sociability of person communication skills and how to deal with different parties in banking practice.
The most important lesson that Internee have learnt during my internship period is the corporate
working environment, which is the basic lesson for my career development. During my internship period,
what I felt is importance of time management and communication skills that help in retaining the
customer of the bank. Since the customers are the main drivers of any financial institution, they should be
pleased by offering quality services, which basically depends upon quick service and pleasing personality
of the staffs, as most of the service offered by commercial bank are same in nature and customers have
different choices to make in the market. I also learned that the behavioral issues are the most important
ones inside the organization.
During internship period, Internee observed that the customers draw the image of the organization
from the behavior of the personnel who have been attached to the organization in any firm. So, the
misbehavior of any personnel, adversely affects the organizational image. Moreover, it was my chance to
know about the coordination between the employees and the external relationship for the organizations
objective.
In an organization, despite being under work pressure, lots of responsibilities and rules and regulation,
there is certain socialized environment which attaches one another which beyond the hierarchy level
creating the environment more friendly and affectionate. The degree of socialize environment of any
organization determine the effectiveness and efficiency of any organization. The friendly environment,
marvelous organizational culture and efficient management are the reason behind the success of NBL
despite of the heavy work load.

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Bibliography

Annual report of Nepal Bank Limited

http://www.nbl.com.np

http://www.google.com

http://www.wikipedia.com

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