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INTERNSHIP REPORT ON SANIMA BANK LIMITED POKHARA BRANCH

SUBMITTED TO Nepal Tourism and Hotel Management College affiliated to Pokhara University Gairapatan, Pokhara

SUBMITTED BY Bibek Shrestha P.U. Regd. No: 2009-2-45-0128 P.U. Roll No: 10450151

In partial fulfilment of the requirements for the degree of Bachelor of Business Administration-Banking & Insurance (BBA-BI)

Pokhara, Nepal July, 2013

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Nepal Tourism and Hotel Management College POKHARA UNIVERSITY

RECOMMENDATION

This is to certify that the internship Report:

submitted by:

Bibek Shrestha

entitled An Internship Report on SANIMA BANK LIMITED has been prepared as approved by this Campus. This internship assignment report is forwarded for examination.

Date:

Supervisor Mr Bhola Adhikari

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ACKNOWLEDGEMENTS

An internship report entitle "AN INTERNSHIP REPORT ON SANIMA BANK LIMITED" has been prepared to fulfill the partial requirement of the project report of BBA-BI 6 th Semester. Foremost I would like to express my deep gratitude to Sanima Bank Limited for providing the exciting opportunity to be one of them and giving me through guidance and opportunity to move ahead with internship objectives. I would like to extend my gratitude to Mrs Kabita Gurung, Assistant Branch Manager, for providing guidance and motivation to me. I‟m also grateful to all staffs- Mr Sarad Timalsina, Mrs Nirupama Poudel, Ms Goma Karki, and Mrs Kausilya Pun for their valuable co-operation, guidance, direction, and continuous support throughout the internship period. I would like to thank Mr Bhola Adhikari and the entire faculty members for supervising me and providing necessary guidelines to complete the report. I would like to extend my heartfelt thanks to all who assisted with their valuable suggestions and ideas while preparing the report.

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TABLE OF CONTENTS

Recommendation

i

Acknowledgements

ii

List of Tables

iii

List of figures

iv

Abbreviation

v

Executive Summary

vi

CHAPTER I INTRODUCTION

1-4

1.1 Background of the study

1

1.2 Objective of the study

2

1.3 Nature and source of data collection

2

1.4 Significance of the study

3

1.5 Limitation of the study

4

CHAPTER II ORGANIZATION ANALYSIS

5-22

2.1 Background of the organization

5

2.1.1 Introduction to Pokhara branch

6

2.1.2 Capital structure

6

2.1.3 Shareholding pattern

7

2.2 Objectives of the organization

8

2.3 Service offered by Sanima bank limited

8

2.4 Product of Sanima bank

13

2.5 Organization structure of Pokhara branch

20

2.6 SWOT analysis

21

CHAPTER III STUDY RESULT

22-29

3.1 Summary

24

3.2 Major findings

26

3.3 Conclusion

27

3.4 Interest rate

28

CHAPTER IV RECOMMENDATION

30-31

4.1 Recommendation to the organization

30

5

LIST OF TABLES

Title

Page No

2.1

Details of Locker Facilities

11

2.2

Details of Sanima Premium Saving

14

2.3

Details of Sanima Fixed Deposit

14

2.4

Details of Sanima Nari Bachat

16

2.5

Details of Salary Deposit Account

18

2.6

Details of Sanima Prime Saving

19

2.7

Details of Sanima Sulav Bachat

20

3.1

Details of Saving Deposit Account

28

3.2

Details of Fixed Deposit Account

29

6

LIST OF FIGURES

Title

Page No

2.1 Shareholding pattern of SBL

7

2.2 Organizational Structure of Pokhara Branch

21

7

ABBREVIATIONS

A/C

=

Account

ABBS

=

Any Branch Banking Service

AD

=

Anno Domini

ADSL

=

Asymmetric Digital Service Line

ATM

=

Automated Teller Machine

BBA-BI

=

Bachelor in Business Administration-Banking & Insurance

B.O.D.

=

Board of Directors

CSD

=

Customer Service Department

GSD

=

General Service Department

INR

=

Indian Rupee

LC

=

Letter of Credit

NRN

=

Non-Residential Nepalese

NTC

=

Nepal Telecom Corporation

P.A.

=

Per Annum

P.U.

=

Pokhara University

PIN

=

Personal Identification Number

PSTN

=

Public Switched Telephone Network

SBL

=

Sanima Bank Limited

SCT

=

Smart Choice Technology

SMS

=

Short Messaging Service

SWIFT

=

Society for Worldwide Interbank Financial Telecommunication

TV

=

Television

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EXECUTIVE SUMMARY

Sanima Bank Limited commenced its operation in 2004 promoted by the Prominent and dynamic Non-Resident Nepalese (NRNs) Businessman. Sanima was the first private sector national level development bank in the country to be capitalized at NPR 320 million. Sanima received the operating license from NRB to function as a “A” Class Commercial Bank & has achieved the triumph to establish as s 32 nd Commercial Bank of Nepal. The current shareholding pattern of the Bank constitutes of promoters holding 70 percent & general public holding 30 percent. The head office of the bank is located at Naksal; Kathmandu. The bank has increased its paid capital to RS 2.02 billion from some 800 million to upgrade into commercial bank.

An internship report entitle "AN INTERNSHIP REPORT ON SANIMA BANK LIMITED" has been prepared to fulfill the partial requirement of the project report of BBA-BI 6 th Semester. The study shows the importance of the internship program. It will help the students to be fully aware of the real world practices before entering into the market as a fresher.

The general objectives of internship program are to relate theoretical studies and to implement it on real job experience, to get the outer exposure and to study the entire services provided by the organization. During the internship period in SBL, the real life job experience was achieved. I spent most of the time in CSD. During the internship substantial work was done which included preparing cheque, preparing account statements, making overdraft statements etc. This is necessary for a student of BBA-BI in order to learn the practical perspective of real job as they have to compete in the competitive market and should prove themselves. Internship program is a gateway for career development. During the internship period theoretical knowledge which was learned in the college was implemented practically.

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CHAPTER I

INTRODUCTION

1.1 Background of the Study

The students of Bachelor on Business Administration with Banking and Insurance of Pokhara University have been assigned to perform 6 weeks internship on

a particular institution and to make an internship report accordingly. This task has

been assigned by Management Faculty of the Pokhara University as a partial fulfillment of the requirement for the degree of BBA-BI program. Faculty of Management; Pokhara University has its ultimate objective of educating students for

professional pursuits in business, industry, government, and non-government sectors.

It is further dedicated for increasing the knowledge of business, service and public

administration. The trend of internship has been continued since the establishment of P.U. in the year 1997. It aims to give students the opportunity to realize and understand the real life business and professional performance and problems on different activities of financial institution.

An internship is a work-related learning experience for individuals

who wish to develop hands on work experience in a certain occupational field. It involves working your expected career field. It gives the students a valuable experience and

a chance to get exposed to the business environment. Interns are usually college or

university students, but they can also be high school students or post graduate adults seeking skills for a new career. Student internships provide opportunities for students to gain experience in their field, determine if they have an interest in a particular

career and create a network of contacts.

This internship program was conducted for three months; it includes three months internship observation and practical output. As a student of BBA-BI, We got an opportunity to do our internship in Sanima Bank Limited. During these 6 weeks we visited to every departments of the organization and observed how the department functions. This bank commenced its operation from 2004 A.D. It is the bank promoted by prominent and dynamic Non-residents Nepalese businessmen.

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Our internship was of three months on Pokhara Branch of Sanima Bank Limited. In these months, we confronted with many knowledgeable, professionals, logical and real systematic approach on every department of bank which can be applicable for our future career. We also got the opportunity to work with staffs and have got the chances to enlarge our knowledge practically.

1.2 Objectives of the Study

The general objective of doing internship is for the partial fulfillment of the requirement for the degree of BBA-BI. The purpose of intern is to give practical and professional knowledge about the banking and insurance sectors to the students. Beside this, the specific objectives are as follows:

To study the entire banking procedures.

To examine about the different products and services offered by SBL.

To examine the overall activities of customer service department.

To acquire knowledge on banking activities and environment.

To understand the practical implication of academic knowledge.

To acquaintance with the overall organizational environment of SBL.

1.3 Nature and source of data Collection

Data is value collected through record keeping or pooling, observation, or measuring. It includes texts and Numbers, Figures and Map, Photographs and Picture. The nature of the report is qualitative and quantitative and the source is primary and secondary. A systematic and scientific methodology always helps in collecting the qualitative and quantitative data. We must consult with various people, booklets, news, newspaper and other source to gain correct data. This report is maintained on the basis of primary as well as secondary sources which are given below:

i. Primary data Primary source of data are known as the data which are collected through observation and direct contact. They are not derived from any other sources. The primary data are the information collected during the internship period by the

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observation and involvement. Most of the primary data are collected through the following sources:

Day to day operation with staff of SBL.

Direct dealings with the customer in the bank.

Personal involvements in the activities of bank.

Observations of the bank and its environment.

Daily activities during internship.

ii. Secondary data The secondary data is one which has already been collected by a source other than present investigator. Secondary data include both raw data and published summaries. Documentary secondary data include written material such as; books,

journal articles, newspapers as well as administrative and public records. These types of data are collected through following ways:

Annual report of Sanima Bank Limited.

Broacher of Sanima Bank Limited.

Website of Sanima Bank Limited.

Different books and newspapers.

TV and radio advertisement.

Hoarding boards.

Review of the related past records.

Opinion of senior teacher colleagues and others.

1.4 Significance of the Study

The major importance of this study is to provide information about the purposes of doing internship, the procedures of transaction made in the bank, handling the customers. It gives the opportunity to be familiar with the real world with the knowledge of overall banking system. It will be useful in identifying the problems and the process of solving them. It helps to use the theoretical knowledge in the practical field, it helps to build the communication skills of student with customer, and it provides the opportunity to know the real world of management.

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1.5 Limitation of the Study

Nothing is perfect. It is true everything must have the limitations. Although various efforts have been made to collect data and information for the internship report. Sometimes authentic data for analysis couldn‟t found as the prompters of the project think it can disclose their industries secrecy.

The various limitations of the study are as follows:

Though the both primary and secondary sources of data have been used in the report they lack precision due to securely problem of the company.

The information gathered was only of Sanima Bank Limited; information of other bank was not possible.

The workload of employee and supervisor was quite hard to give proper guidance to the intern.

The report may not have complete information about the other department of the bank. Almost most of the time was spent on CSD.

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CHAPTER II ORGANIZATIONAL ANALYSIS

2.1 Background of the Organization

Sanima Bank Limited commenced its operation in 2004 promoted by the Prominent and dynamic Non-Resident Nepalese (NRNs) Businessman. Sanima was the first private sector national level development bank in the country to be capitalized at NPR 320 million. Today Sanima has completed 8 years of consistent profitable operation. Its new building is located at Narayan Chaur Kathmandu. In the pursuit of sustainable growth, Sanima has 24 full-fledged branches within and outside the Kathmandu Valley and has further plans to expand its reach in the various part of the country. (Sanima, 2013)

Sanima received the operating license from NRB to function as an “A” Class Commercial Bank & has achieved the triumph to establish as s 32 nd Commercial Bank of Nepal. The current shareholding pattern of the Bank constitutes of promoters holding 70% & general public holding 30%. The head office of the bank is located at Naksal; Kathmandu. The bank has increased its paid capital to RS 2.02 billion from some 800 million to upgrade into commercial bank. (Sanima, 2013)

Sanima provides one window financial solutions to the customers with the wide range of Products and Services. Sanima not only offers readymade products and services, but also offers customized services to better suit the needs of the individual customer. (Sanima, 2013)

Sanima use centralized banking software called PUMORI BANKING SOFTWARE. This software supports modern banking facilities like Tele banking, Internet banking, SMS banking, ATM services and many more. The sophisticated communication technology has interlinked its branches into centralized database system and enables the bank to provide anywhere banking facilities to its valued customers. It is also known as Any Branch Banking Service. Sanima is committed to exceed customer expectations in all areas of its Business through consistent processes, innovations and Improvements. (Sanima, 2013)

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2.1.1 Introduction to Pokhara Branch

Despite the tough competitive banking environment with on-going arrival of new banks and financial institutions, Sanima has been able to extend its operation on different area of country. The bank has established its branch at Pokhara. Though this branch is located at Newroad, Pokhara but this is named as Pokhara branch. The personnel working in this bank are six in number. They work as a family member to make the working environment friendly, motivating and supportive. It consists of department such as CSD, teller, credit, remittance etc. The CSD carries major activities such as disseminating of information, opening an account, closing an account, cheque printing, prepare statement of balance, receiving phone calls, balance enquiry and assist illiterate one to withdraw their money. The teller department carries out function such as clearing cheques, receiving deposits, providing payments etc. The credit department is responsible for investing in different investment proposals such as business loan, auto loan, hire purchase loan, project financing, education loan etc. On other hand, remittance department is responsible to send and receive funds to or from various places, transfer funds through various modes like draft; fax transfer etc. The branch is interlinked by the centralized banking software named PUMORI which helps it to carry Any Branch Banking Service. The Pokhara branch also provides facilities like SMS banking, internet banking, ATM/Debit card, ABBS etc. The branch always value their customer and pledge to deliver all products and services in a customized and simplified manner in line with their slogan of “Banking Simplified”.

2.1.2 Capital Structure

It is very important to have capital in order to establish and run the business.

Authorized Capital : Rs. 2,10,00,00,000

Issued Capital : Rs. 2,01,60,00,000

Paid-up Capital: Rs. 2,01,60,00,000

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2.1.3 Shareholding Pattern

Fig 2.1 Shareholding pattern of SBL

Public 30% Promoter 70%
Public
30%
Promoter
70%

Source: www.sanimabank.com.np,2013

Shareholding pattern shows how shares of a company are split among the entities that make up its owners. It helps to control the decision making power of the company, election of the Board of Directors of the company, controlling the management of the company. Promoters may include domestic and foreign promoters. Promoters are the entities that floated the company, and to a large extent have seats on the Board of Directors or the management. Public may include institutional investors like Banks, Financial Institutions, Insurance Companies, Mutual Funds , Foreign Institutional Investors and others like private Corporate bodies, Trusts, Foreign Companies , you and me.

The shareholding pattern of Sanima bank states 70 percent promoters and 30 percent public. It means that the promoter have high authority and right then public. We can say that the promoter have the control over the management, they have right to declare the B.O.D and other decision.

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2.2 Objectives of the Organization

Every organization has mission and objective. Generally on organization mission is based on the customer satisfaction. It describes an organization‟s present capabilities, customer focus activities, business makeup which leads to the fulfillment of its objectives. Similarly, Sanima Bank strives to provide banking and financial solutions in a simplified way with customer focus while adding value to stakeholder‟s interests.

The objective should not be contrary with strategic management. Strategic management helps to analyze environment. It is the string of decision and actions which leads to the development of an effective strategy or strategist to help achieve organizational objectives. A game plan is needed to accomplish according to the objectives. Successful organization continuously adapt to changing markets place. This can change the strategic plan the objective made. As commercial bank Sanima Bank has the following objectives.

Satisfied Stakeholders

Motivated Workforce

Quality Assets

Well Diversified Portfolio

Optimum Return to Shareholders

High Standards of Corporation Governance

2.3 Service offered by Sanima Bank Limited

Sanima Bank provides full fledge commercial banking services to its clients. Service excellence and quality is the main theme of the organization. Service is anything that can be offered in a market to satisfy need or want of the customers. Though it‟s also challenging to balance standardization and personalization for both efficiency of the organization and satisfaction of its customers. In case of banking sector most of the services are intangible, ideterogeneous and financial in nature. Sanima offers different products and services to meet the requirement of the customers. Major services offered by Sanima Bank are as follows:

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2.3.1 Sanima Debit Card

Sanima Bank have been issuing Sanima Debit Card to their depositors since January 2008.The Debit Card is linked to the Smart Choice Technology (SCT), the largest ATM Network Company in Nepal; providing 24 hours account access facility to its customers. Sanima Debit Card can be used in more than 1000 SCT network to withdraw cash without any charges. Sanima Debit Card can be used in every ATM of Punjab National Bank, India to withdraw cash. Sanima Debit Card is issued at the time of opening saving or personal current account at an issuance cost of Rs.200. An annual service charge of Rs.100 is charged in the second year from the debit card holder. The facilities provided by Sanima Debit Card are:

Cash Withdrawal

Mini Transaction Report

Mini Statement Prints

Balance Enquiry

Payment for purchase of goods/ services at the merchant locations (through POS)

Personal Identification Number (PIN) change

2.3.2 Sanima i-Banking

Sanima Bank offers internet banking services to its valued customers. The customer having i-banking facility can enjoy 24 hours the absolute freedom of banking from any part of the world. Sanima i-Banking gives every customer immediate online access to their accounts easily, conveniently and securely. The feel of luxury of complete internet banking can be received from Sanima i-Banking. Some of the features of i-Banking are:

Access your accounts, 24 hours a day, 7 days a week

Save money and time- no more stamps or handwritten

Transfer funds within a group

Make payment of Nepal Telecom bills

Online shopping

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2.3.3 Sanima SMS Banking

SMS Banking is one of the services that Sanima Bank offers to its customers. It‟s a new 24 hour banking convenience which helps customer to stay on top of any recent changes made in the bank account or a loan account through mobile phone. The number for the service is 2265.

Services offered under SMS Banking are as follows:

Balance Enquiry

Transaction notification

Foreign Exchange Rate Enquiry

Account Statement Request

Cheque Book Request

2.3.4 Inward Remittance

Remittance is one of the major incomes generating service of banks. Remittance service of the bank is beneficial both to the business and personal customers as it make the transfer of money easier. It covers large percentage of its national income. It facilitates the sending and receiving funds to/from various places. It can also promote access to financial services for the sender and recipient increasing financial and social inclusion. Sanima Bank offers number of remittance products to cater the customer need for transferring their money in and out of the country through:

Western Union Money Transfer

Sanima Xpress

Prabhu Money Transfer

Himal Remit

Prithivi Remit

Laxmi Bank Express Money Transfer

Everest Remit

MTA Express Remittance

WORLD LINK Money Transfer

City Express Money Transfer

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Money Gram International Money Gram

Reliable Remit

IME

2.3.5 Any Branch Banking Services (ABBS)

Sanima Bank has Any Branch Banking System to facilitate its customers to have easy transaction. As well, for the solutions of endless long procedure, rush hour

traffic, long queues, risk of carrying huge sums of money to the bank, wanted to take out money from your account but found out that the bank was convenient service is introduced. The customers can withdraw or deposit cash, receive information about the balance in their account or obtain a statements of accounts is convenient from any branch. The network is online and one can have access to his/her account from any of the branches of the bank.

2.3.6 Locker Facilities

Sanima offers safe deposit locker to its customer to provide additional securities for their valuable goods. Locker Facilities are available at Head Office, New Road and Butwal Branch of Sanima.

Table 2.1 Details of locker facilities

Size

Key Deposit Rental Per (NPR)

Annum (NPR)

Height 4.92", Width 6.88", Depth 19.37"

10,000/-

1,500/-

Height 4.92", Width 13.85", Depth 19.37"

15,000/-

2,500/-

Height 10.94", Width 13.85", Depth 19.37"

20,000/-

3,500/-

Source: www.sanimabank.com.np,2013

The above table shows the details of locker facilities provided by Sanima bank. The height of 4.92, width of 6.88 and depth of 19.37 size of locker charges Rs 10,000 where annual payment is Rs 1,500. In the same way the height of 4.92, width of 6.88 and depth of 19.37 size locker charges Rs 15,000 where its annual payment is Rs 2,500. And lastly, the height of 10.94, width of 13.85 and depth of 19.37 size locker charges Rs 20,000 with the annual payment of Rs 3,500.

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From the above table we can conclude that as per the size of the locker the bank charges the rental price.

2.3.7 Foreign Currency Transaction

Sanima has been providing following Foreign Currency Transaction

 

Foreign Currency Deposits

 

Current

Saving

Fixed Deposit Account

 

Travellers Cheque Sale / Purchase

Cash Sale/ Purchase

Demand Draft

Inward / Outward Remittance

SWIFT / Telegraphic Transfer

Cross Currency Transaction

2.3.8

INR Draft

Sanima Bank Limited introduces remittance services to its valued customers through Standard Chartered Bank in India with following facilities:

Draft issuance/Fund Transfer Facility through more than 700 location all over India

Inward/Outward Remittance

Clearing Services / Bills for Collection

Easy and reliable transaction

2.3.9 Sanima Utility Payment

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NTC Post-Paid Payment: Customer can make a payment to Nepal Telecom for NTC Post-paid payment. Customers can make a payment by filling a deposit receipt form and deposit the amount in any of the branch counters.

2.4 Product of Sanima Bank Limited

A. Sanima Current Account

B. Sanima Premium Saving

C. Sanima Fixed Deposits

D. Muna Bachat Khata

E. Sanima Nari Bachat

F. Shareholder Saving

G. Senior Citizens Saving

H. Sanima Salary Saving

I. Sanima Prime Saving

J. Sanima Sulav Deposit

2.4.1 Sanima Current Account

Different types of account are opened with different purpose. Current Account can be opened in the name of Proprietary Concerns, Partnership Firms, Corporations, Companies, Government Agencies, Non-Government Agencies, Loan clients etc. This account required minimum balance of Rs.1000 for others and Rs.10000 for loan clients. The account holder can deposit and withdraw their cash unlimited. They are not provided any interest rate. (Sanima, 2013)

2.4.2 Sanima Premium Saving

Premium saving account is an attractive and new saving account introduced by Sanima. This account can be opened with the minimum balance of Rs. 10,000. This account provides 6% interest rate per annum on daily balance. This is an attractive product for the customer to earth higher interest on saving account with free ABBS service. The interest rate of the product can be fluctuate over the period of time depending upon market condition and other various factors. (Sanima, 2013)

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Table 2.2 Details of sanima premium saving

Opening Balance

NPR 10,000

Rate of Interest

6%

Interest Payable

Quarterly

ABBS

Free

ATM withdrawals

Free withdrawals from any SCT Network

Source: www.sanimabank.com.np,2013

The above table is the details of Sanima premium saving. This table clearly shows the opening balance of account and its interest rate. Here the interest is payable quarterly and ABBS service is free.

2.4.3 Sanima Fixed Deposit

Fixed deposit account is another type of account offered by Sanima bank with a specific feature. There are 4 types of schemes under fixed deposit account with varying time period. They are 3 months, 3 to 6 months, 6 to 9 months and 1 year and above. As concerning the amount depositors want to deposits the interest rate will be different. Under this account interest are payable monthly, quarterly and at maturity. The account holder has a facility of overdraft up to 80 percentage of their total deposit. (Sanima, 2013)

Table 2.3 Details of sanima fixed deposit

     

Interest Rate (% p.a.)

 

Interest

 

Above 3 Months to 6 Months

Above 6 Months to 9 Months

 

Account Type

Payment

Up to 3 Months

1 Year & above

Sr. Citizen

Monthly

 

5.00

6.00

7.00

Normal Fixed Deposit

Quarterly

 

5.00

6.00

7.00

Normal Fixed Deposit

At Maturity

4.00

5.25

6.25

7.25

Source: www.sanimabank.com.np,2013

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In the above table we can analyze that the fixed deposit account have the highest interest rate as compared to other account of Sanima bank. Here two types of account can be opened like Senior citizen and normal fixed deposit. Where senior citizen account interest is payable monthly and normal fixed deposit is payable quarterly and at maturity.

2.4.4 Muna Bachat khata

Sanima has offered Muna Bachat Khata for children below 16 years. This account can be termed as planned saving. There are 2 types of schemes under this saving account. (Sanima, 2013)

Age limit less than 16 years to pen this account

Account can be opened at zero(0) balance

Deposit and Withdrawal unlimited

Interest Rate 4% p.a. on daily balance

Free SMS Banking Service

Free Account statement, Cheque Book issue

25% discount on Draft issuance for account holder and/or parents

25% discount on Travellers‟ Cheque issuance for account holder and/or parents

Note: After crossing the age of 16, account will be converted in to normal saving account, after getting the application from the clients.

Investment plan

Investment muna with life insurance coverage

Recurring saving plan

Recurring muna with life insurance coverage

Recurring muna without life insurance coverage

Key benefits

Planned saving

Attractive Future Return

Life insurance coverage

Discounted premium

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Hassle Free

Extra benefits

Child up to 7 does not require any medical examination

Corporate Discount on insurance premium charge

Free SMS banking and I-banking

50% waiver on locker charge

50% waiver on loan processing charges

Added benefit of privilege card which provides discount at various Outlets like hospitals, book stores and other kid‟s store

2.4.5 Sanima Nari Bachat

Sanima Nari Bachat is focused for the women only to provide convenient banking experience. This account can be opened with zero balance which provides 4% interest rate on daily balance. The interest is payable quarterly. The account holder can get free SMS banking, free i-banking, free ABBS and free PSTN bill payment. Along with this 25% waive on safe deposit locker charge for 1 year is free.

Table 2.4 Details of sanima nari bachat

Opening Balance

Zero Balance

Rate of Interest

4%

Interest Payable

Quarterly

SMS Banking

Free

i-Banking

Free

ABBS

Free

Safe Deposit Locker

25% waive for 1st year (subject to availability)

PSTN Bill Payment

Free

ATM withdrawals

Free withdrawals from any SCT Network

Source: www.sanimabank.com.np,2013

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From the above table we can easily know that Nari Bachat is the zero balance account with the interest rate 4%. And many free services are provided to the women who open this account.

2.4.6 Shareholder Saving

With the objective of providing services to its shareholders, Sanima has established separate saving account which is called shareholders saving account. This account can be opened with zero balance which provides 4% interest rate on daily balance. (Sanima, 2013)

Features

Account can be opened with zero balance.

Interest rate 4% on daily balance

Free accidental death insurance worth Rs 1,00,000/-

25% discount on locker rental charge(subject to availability) to account holder

25% discount on commission for issuance of draft and Travellers Cheque

No fees on inward remittances

Unlimited deposit and withdrawal

Loan against security of deposit with attractive interest rate.

Free withdrawal from any SCT ATM network

2.4.7 Senior Citizen Savings

Sanima bank limited offers special benefits and privileges for senior citizen. Any individual above 50 years can open an account with minimum balance of Rs.200 which provides many benefits to the account holder. (Sanima, 2013)

Key Benefits of the account:

Free withdrawals from any SCT ATM Network

Dedicated Relationship personnel

Flexible options

High return

Monthly interest payable

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Features of Senior Citizen Savings Account

Account can be opened at NPR 200

It can be a joint account as well as individual

Facility for nominee

Unlimited withdrawal and deposit facility

Free cheque book

Free ABBS services

50% discount on locker fees

2.4.8 Salary Deposit Account

Sanima has also offered salary deposit account targeting Companies, Corporations, Government Agencies, Non-Government Agencies etc. The main objective of offering this account to different government and non-government companies is for facilitating to pay salary directly to the account of their employees. This account can be opened with zero balance which provides 4% interest rate. (Sanima, 2013)

Table 2.5 Details of salary deposit account

Opening Balance

Zero Balance

Rate of Interest

4%

Rate of Clean overdraft facility

20%

Credit Limit

Two times of net salary per month not exceeding Rs. 200,000.00

Accidental Death Insurance

RS. 1,00,000.00

ATM withdrawals

Free withdrawals from any SCT Network

Source: www.sanimabank.com.np,2013

In the given table of salary deposit account we can see that the account holder can get the facility of 20% overdraft of net salary. It can be also seen that account holder get the accidental death insurance of Rs.1,00,000,00.

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2.4.9 Sanima Prime Saving

Another type of saving account is Prime saving account. Prime saving account can be opened with minimum balance of Rs.5000 which provides 5 percent interest rate per annum on daily balance. Interest is payable quarterly. (Sanima, 2013)

Table 2.6 Details of sanima prime saving

Opening Balance

NPR 5,000

Rate of Interest

5%

Interest Payable

Quarterly

ABBS

Free (Within Kathmandu Valley)

SMS

Free

I-Banking

Free

ATM withdrawals

Free withdrawals from any SCT Network

ATM withdrawals

Free withdrawals from any SCT Network

Source: www.sanimabank.com.np,2013

From the above table we can analyze that the Sanima prime saving account has the opening balance of Rs.5,000 and its interest rate is 5%. It also provides the ABBS service free within the Kathmandu valley only. Whereas SMS and i-banking are free all around the nation.

2.4.10 Sanima Sulav Bachat

Sanima Sulav Bachat is the different type of account provided by Sanima bank. This account can be opened in zero balance which gives 4% interest rate on daily balance. The interest payable is quarterly. The unique factor of this account is the personal death accidental insurance of Rs.100,000,00. (Sanima, 2013)

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Table 2.7 Details of sanima sulav bachat

Opening Balance

Zero Balance

Rate of Interest

4%

Interest Payable

Quarterly

Personal Death accidental Insurance

Rs.100,000.00.

ATM withdrawals

Free withdrawals from any SCT Network

Source: www.sanimabank.com.np,2013

In the given above table the customer can open an account in zero balance with 4% interest and also gets the insurance of Rs.1,00,000,00.

The common factor of all the account is free withdrawals of cash from any SCT network. The account holder of Sanima bank gets free withdraw of cash from any SCT network within the nation.

2.5 Organizational structure of Pokhara Branch

Typically hierarchical is the arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. The structure can be shown as:

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Figure 2.2 Organizational structure of pokhara branch

Branch Manager Operation Marketing Credit Department Department Department Teller CSD
Branch
Manager
Operation
Marketing
Credit
Department
Department
Department
Teller
CSD

Source: pokhara branch of SBL

This is organizational structure of Sanima Bank Limited, Pokhara Branch. Branch manager is head of the organization. He supervises the employees and takes major decision. Credit head deals with the loan customers and do documentation. The ready file is signed by credit officer & branch manager and send to the head office for the approval. It takes minimum 5 days for credit file to be approved by head office after sending from Pokhara branch. Operation department includes CSD and Teller department. CSD department deals with the customers perform task of cheque clearing etc. Teller department helps customer to deposit and withdraw cash from bank. Operation head control and supervise CSD and Teller staffs of the organization. Since it is branch office, all the staffs work with cooperation helping each other.

2.6 SWOT Analysis

The word SWOT stands for Strength, Weakness, Opportunity and Threats. It is done to understand the external and internal environment of an organization. The forces in the external environment provide opportunity and threats. The forces in the

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internal environment provide strength and weaknesses. The major findings from the

SWOT analysis of Sanima Bank (Pokhara Branch) are as follows:

2.6.1 Strength

Strength is an inherent capacity which organization can use to gain strategic advantage over its competitors. It‟s related with internal environment. (Agrawal,

2012)

The bank‟s ATM/Debit Card can be used in more than 1000 ATMS through

the country free of any charges. Debit Card of Sanima has also extended all

over India with an agreement with Punjab National Bank of India.

Working environment is nice.

Good quality services.

The bank has wide range of services that not only provide window financial

solution but also customize offering that suits need of customer.

For example: INR Draft, Telephone Bill Payment, etc.

The management teams are highly qualified and well experienced in their

work.

Good relationship between customer and employee.

2.6.2 Weakness

Weakness is an inherent limitation which creates a strategic disadvantage for a business organization in relation to competitors. (Agrawal, 2012)

There are limited areas of operations geographically and product wise.

There is huge queue in bank; less amount of teller/cashier.

Sanima has extended its branches on limited area of the country which is still

unable to cover the targeted market like major trading areas.

The infrastructure of bank is poor. It is operating in small building in rent.

There is no parking facility in the bank for customers.

Time consuming in opening accounts of the customers.

2.6.3 Opportunity

Opportunity is a favorable condition in the environment. It enables a business organization to consolidate and strengthen its position. (Agrawal, 2012)

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People are more interested in banking activities.

It is „A‟ class commercial bank.

It has an opportunity towards global penetration due to the existence of Non

Resident Nepalese promoters.

2.6.4 Threats

Threat is an unfavorable condition in the environment. It creates risk and causes damage to business organization. (Agrawal, 2012)

Increasing number of financial institutions.

Unstable political situation.

Entry of foreign institutions after the year 2010 AD.

Fluctuation in interest rate.

Changes in banking technology.

Employees are easily taken away by the competitors.

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CHAPTER III STUDY RESULT

This chapter includes data which are collected during the time of our internship period. Also this chapter deals with procedures required for opening various types of accounts and the closing which are presented and analyzed. The different product and services provided by the bank are categorized in this chapter.

3.1 Summary

The trend of internship has been continued since the establishment of P.U. in the year 1997. The student of BBA and BBA-BI of Pokhara University has been assigned to perform 6 to 8 weeks internship on a particular financial institution and to make an internship report accordingly. It objects in gaining knowledge and skills related to the organizational activities in the partial fulfillment of the requirement for the degree of Bachelor. The internship period confronts student with real life practices and systematic working approaches. The student can have knowledge regarding organizational activities and practices, customer dealing, services offered and makes working habit. The basic objective of the study and the internship is to blend theoretical knowledge and skills acquired in the classroom situation with the real life settings of the organization. It aims to give students the opportunity to realize and understand the real life business and professional performance and problems on different activities of financial institution. SBL is an independent and autonomous financial institution established under Financial Act 2042 B.S. and started its operation from 2004 B.S, with an objective to collect the scattered money and utilize it in productive sectors. Sanima is promoted by prominent and dynamic Non-resident Nepalese businessman. Its head office is located at Alkapuri, Naxal, Kathmandu. In the pursuit of sustainable growth Sanima has 24 full-fledged branches within and outside the Kathmandu Valley and has further plans to expand its reach in the various part of the country. Sanima received the operating license from NRB to function as an “A” Class Commercial Bank & has achieved the triumph to establish as s 32 nd Commercial Bank of Nepal.

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I have completed my internship from New Road, Pokhara Branch. The duration of internship was 3 months. During internship period I have used different methodology to study organizational activities. The nature of the report is qualitative and quantitative and the source is primary and secondary. This report is completed with the help of both primary and secondary data. Most of the primary data are collected through day to day operation with staff of SBL, direct dealings with the customer in the bank, personal involvements in the activities of bank, observations of the bank and its environment and daily activities during internship. Secondary data are already published books, journal articles, newspapers as well as administrative, annual report of Sanima Bank Limited, broacher of Sanima Bank Limited, website of Sanima Bank Limited.

From the analysis and presentation of data, facts and figure various conclusion has been derived which are as follows:

The banking procedure of SBL is conducted under Nepal Rastra Bank. It commenced its business as a commercial Bank and uses software called PUMORI BANKING SOFTWARE.

SBL offers 9 banking service and 10 product, which are highly used by customers.

SBL have different department which are customer service department, system G.S.D. and accounts department, Guarantee L.C and Loan Department. The customer service department is most busy department.

After the internship period of 3 months I have gained many banking knowledge and now I am able to operate any department of bank and share my banking experience very comfortably.

Only academic knowledge does not make any student complete so practical implications are very important and internship helps to explore practical knowledge.

SBL is one of the best commercial bank in Nepal. It has its own banking environment. Comparing to Pokhara Branch it was very comfortable to work, staffs were very helpful and friendly, working system is simple and advance.

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3.2 Major findings

During the internship period the following major findings are derived:

The procedure for opening account is simple and easily opened within a short period of time.

The study shows that maximum numbers of people choose SBL as their Bank because of the SBL performance. This states that the customer of SBL perceived Sanima as good Bank in terms of the performance

Flow of opening saving account is higher than the current and fixed account.

Most of the customers are satisfied by the free SCT service.

Most people close their account due to their own problems rather than other reasons.

Customers are satisfied with the services and friendly behaviors of the staff.

Friendly, co-operative, helpful, skillful staff.

While opening the account in Sanima Bank, the minimum balance is comparatively higher than other bank.

The Bank gives equal value to every customer.

Sanima Debit Card can be used in more than 1000 SCT network to withdraw cash without any charges.

Payment of every account interest is done quarterly except Senior Citizen Saving Account, which is paid monthly.

Highest interest rate in deposit account is 6%, which is of Sanima Prime Saving and Sanima Premium Savings.

The interest earning to loans and advance is increased.

Mainly three types of account are hold by the people they are current, saving and fixed deposits.

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3.3 Conclusions

The following conclusions have been derived with the help of the major findings of the study:

There are certain reasons for existing customer of saving account of any bank to shift to another bank. The level of service in terms of delivering whatever is promised/ fast response in case of problems, is the most important benefit that the customer seek, from the bank they have a saving account with.

The CSD department is responsible for creating and maintaining relation between customer and bank.

Researcher found that most of the people were not aware about the product and service of the SBL.

Network reach and visibility of a bank is very important criterion for the customer while opening a saving account.

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3.4 Interest Rate

The amount charged, expressed as a percentage of principal by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. When the borrower is a low-risk party, interest rate charged will be low; if the borrower is considered high risk, the interest rate charged will be higher. (Investopedia US, 2013)

Table 3.1 Details of Saving Deposit Account

1. Saving Deposits

 

Account Type

Interest Rate (%p.a.)

Interest Payment

1. Senior Citizen Saving Account

4.00

Monthly

2. Sanima Nari Bachat

4.00

Quarterly

3. Sanima PF Saving Account

4.00

Quarterly

4. NRN Saving Account

4.00

Quarterly

5. Sanima Salary Account

4.00

Quarterly

6. Shareholders Saving

4.00

Quarterly

7. Sanima Muna Bachat

4.00

Quarterly

8. Flood Relief Account

4.00

Quarterly

9. Investment Muna with Life Insurance

4.00

Quarterly

Coverage

10.

Recurring Muna with Life Insurance

4.00

Quarterly

 

Coverage

   

11.

Recurring Muna w/o Life Insurance

4.00

Quarterly

 

Coverage

   

12. Sanima Prime Saving

5.00

Quarterly

13. Sanima Premium Savings

6.00

Quarterly

14. Sanima Commitment Saving Account

6.00

Quarterly

15. Other Savings Account

4.00

Quarterly

16. Sanima FCY Saving Account

1.50

Quarterly

Source: www.sanimabank.com.np,2013

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Table 3.2 Details of Fixed Deposit Account

Base Rate-Magh 2069: 10.23%

2. Fixed Deposits (NPR)

Interest Rate (% p.a.) Account Interest Above 1 Type Payment Above 3 Months to 6
Interest Rate (% p.a.)
Account
Interest
Above 1
Type
Payment
Above 3
Months to 6
Months
Above 6 Months
to 9 Months
1 Year
Year
Sr. Citizen
Monthly
5.00
6.00
7.00
7.25
For Individual
Interest Rate (% p.a.)
Time Period
Quarterly
Maturity
1
Month to 3 Months
4.00
Above 3 Months to 6 Months
5.00
5.25
Above 6 Months to Below 1 Year
6.00
6.25
1
Year
7.00
7.25
Above 1 Year
7.25
7.50
For Institution
Interest Rate (% p.a.)
Time Period
Quarterly
Maturity
1
Month to 3 Months
4.00
Above 3 Months to 6 Months
5.00
5.25
Above 6 Months to Below 1 Year
5.50
6.00
1
Year
7.00
7.25
Above 1 Year
7.25
7.50

Source: www.sanimabank.com.np,2013

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CHAPTER IV RECOMMENDATION

4.1 Recommendation to the Organization

The recommendation of this study is duely based on the financial analysis of Sanima bank. So, recommendations are given to the financial performance of the bank as follows:

Nowadays many joint ventures banks are establishing in Nepal. So bank should be competent enough to compete with them.

The bank should have consistent dividend payout ratio so that the shareholder could be motivated parallely.

Sanima should distribute its brochure, product papers and about its new services firstly to their existing customers and sustains them well.

To make people aware of its services bank should use more effective promotional tools like advertisement through F.M, T.V, and Hoarding Board on different places etc.

The limited number of staff s is also the problem in the bank even though they are handling the task.

Bank should focus not only the special clients but it must focus deprived clients too.

Today is the age of modern technology. So it must be quick in adopting new technology in comparison to its rivals.

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4.2 Recommendation to the College

For the completion of the internship as well as for the success of report writing Nepal Tourism and Hotel Management Collage has a significant role. Though the college administration and the teachers supported in internship period and report writing there are some recommendations for the college:

College should arrange the entire student for intern in time according to the student interest.

The internship time period is very short and student are not getting time to work. So college should make provision of internship for a whole semester.

College should supervise continuously to students for report writing and manage the college schedule during internship time.

College should make available of organization for internship instead of students personal effort.

Some teachers need to visit in banks or some other financial institutions to ask about the student‟s performance.

College should force students to complete their internship and internship report on time.

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REFERENCES

Agrawal, D. G. (2012). Components of internal and external environment. In D. G. Agrawal, Business Environment in Nepal (pp. 8,11). Kathmandu: M.K. Publishers and Distributers.

Investopedia US, A. D. (2013). investopedia. Retrieved 07 08, 2013, from http://www.investopedia.com:

http://www.investopedia.com/terms/i/interestrate.asp

pun, m. (2011). Product and Services of Sanima Bikash Bank Limited. pokhara.

Sanima, B. (2013, 01 08). WWW.SANIMABANK.COM. Retrieved 05 09, 2013, from WWW.SANIMABANK.COM:

http://www.sanimabank.com/main/index.php?0aHTpZGp3unkoA==

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