Deposit Analysis of Nepal SBI Bank Ltd.

Chapter 1
INTRODUCTION
1. Introduction of Bank

A. Origin and Meaning of Bank:

Origin of Bank:
Various thinker and economists have forwarded different ideas regarding the origin of banks. The
English word bank is said to have been originated from the Latin word 'Bancus' which means
'bench'. The Italian gold smiths used to sit on benches to do their business of money exchange and
gold and silver trading during ancient times. The words for bench were 'Banck' in German,
'Banca' in Italian and 'Banquee' in French, from which it was used as 'Bank' in English language.

French writer Revilpot says “banks and currency notes were in use even around 600 B.C. at
Babylonia.”

Indigenous bankers and moneylenders operated in India during the Vedic Period. Those were the
earliest forms of banking in the world.

Banking was institutionalized as it passed through several developmental stages. The earlier banks
operated non-individual level. The history of modern banks starts from the establishment of the
Bank of Venice, established in Venice, in Italy, in 1157. Later on Bank of Barcelona was
established in Spain in 1401 and Bank of Genoa was established in 1407 and Bank of
Amsterdam in 1607, Bank of Hamburg in 1619. The Bank of England was established in 1694.
The development of bank took a primary position during the 18th century with the Industrial
revolution starting in Europe. By the century, almost all the countries had their own banks.

Nepal Bank Limited was established under the Nepal Bank Limited Act 1937. Nepal Rastra Bank,
the central bank of Nepal was established in 1956.

Crowther describes Merchants, Moneylenders and Goldsmiths as the three ancestors of modern
banking as.

MERCHANTS:

Merchants were the first ancestors of modern banks. In the beginning the merchants used to trade
in gold and silver coins, exchange foreign currencies, accepting the deposits of gold, silver and
other valuables to provide securities and issuance of receipt letters etc. due to prestige and trust
earned by the merchants, the receipts issued by them were considered as good as paper currency
notes. These letters gave birth to modern negotiable instruments.

MONEY LENDERS:
Money lenders were the second ancestors of modern banks. Earlier, men used to borrow money
from others for their personal use. The creditors used to give loans from their own capital.
Gradually people started depositing their own money with the moneylenders for security as well
as earning interest on their idle money with the moneylenders. This will lead to an expansion in
the work-field of these moneylenders. The main occupation of became to accept deposits and give
away loans. The relatives and family members of experienced and qualified moneylenders took up
this work,

GOLDSMITH:

The last ancestor of modern banking constituted of goldsmiths. The profession of the goldsmiths
demanded the use of strong and reliable safes. The people would deposit their money, gold, silver
and other valuables with the goldsmiths. The goldsmiths would issue receipts and charge some
money as commission for providing security to the valuables of the customers. Such deposits
would be retained at demand. Through experience, the goldsmiths learned that all the money
deposited were not demanded at once, hence, they started investing such money against security
deposits and also started paying some interest to the depositors. This led to a great expansion of
the work-field of the goldsmiths. The receipts issued by goldsmiths were transferred from one
person to another and was used as a medium of exchange of money. This custom is said to have
led to the discovery and use of paper currency notes. This way goldsmith started the functions of
banks of accepting deposits, giving loans and creating credits a very long time back.

Meaning of Bank:

Bank is the financial institution that deals with the monetary transactions. It is the financial
institution with an aim to accumulate the idle money of the general public and advancing to their
profit sectors. In order to collect the money, banks offer attractive rate of return for their savings.
Bank then mobilizes their deposits in providing loan facility to the general public, business houses,
industries, and agriculture and other needy sectors by charging some interest. In this way the main
objective of the bank is to mobilize idle resources in a productive area after collecting from
different scattered sources. Thus banks through their operation act as a mediator between the saver
and the investors and generate profits for self-existence.

The functions of modern banking system are multifarious in nature and owing to the shift in
emphasis of the functions of banks a different stage of development, different economists have
defined banking in different ways.

Economist Definition
Name
Prof. R. Bank is an institution whose debts (bank deposits) are widely accepted in
S. Syers settlement of other peoples debts to each other
Prof. Kinle Bank is an establishment which makes to individual such as advances of money
as may be required and safely made to and to which individuals entrust money
when not required by them for use.
Dr. H.L. Hart provides a slightly different definition when he says, "A banker is one who in the
ordinary course of his business, receives money which he pays by honoring
ordinary course of his business, receives money which he pays by honoring
Geoffrey Cr Bank is an establishment which makes to individual such as advances of money
owther as may be required and safely made to and to which individuals entrust money
when not required by them for use

All the above economists have concentrated on one or a few functions of banks. Banks, as such,
can be described early and briefly as institutions which dear in money and credit.

Thus, banks are those institutions whose functions are related with; creation of money and credit,
acceptance of deposits from the people, forwarding of loans, transfer of money, and agency
functions to customers, etc. The exclusive functions of banks of creation of credit have earned
them the title of 'Factories of Credit.'

B.Historical Development of Banking in Nepal:

As in other countries of the world, goldsmiths and landlords were the ancient bankers of Nepal.
Though "Tejarath Adda" carried out not all the banking activities established during the tenure of
the then Prime Minister Rannodip Singh in 1993 BS was the first step towards the institutional
development of banking in Nepal. "Tejerath Adda" did not collect deposits from the public but
gave loans to employees and public against bullion.

Banking in true sense of term started with the inception of Nepal Bank Limited on 30th Kartik
1994 B.S. (1937 A.D.) under Nepal Bank Act. Similarly to developed banking sector and to
formulate monetary policies, Nepal Rastra Bank was set up in 2013 B.S. (26th help the government
April 1956) under 1956 special act. Then the second commercial bank of bank of Nepal "Rastriya
Banijya Bank" was established in 2022 B.S. (1959 A.D.). NIDC was established in 2016 B.S. in
order to develop industrial sector and with a view to promote the development and modernization
of the agricultural sector of the kingdom of Nepal, the Agriculture Development Bank was
established in the year 2024 B.S.
 In 2042 BS government adopted liberal economic policy and allowed for the establishment of joint
venture banks under collaboration with different foreign banks. Following are the joint venture
banks, which are operating in the kingdom of Nepal.

 Nepal SBI Bank Ltd.

 Nepal Arab Bank Ltd.
 Himalayan Bank Ltd.
 Nepal Bangladesh Bank Ltd.
 Nepal Industrial & Commercial Bank Ltd.
 Bank of Kathmandu Ltd.
 Everest Bank Ltd.
 Kumari Bank Ltd.
 Laxmi Bank Ltd.
 Lumbini Bank Ltd.

The name of the three banks has been changed in the recent year. They are:

 Nepal Indosuez Bank Ltd. (Renamed as Nepal Investment Bank Limited on

30th May 2002)

 Nepal Grindlays Bank Ltd (Renamed as Standard Chartered Bank Limited on

th
13 July 2001

 Nepal Bank of Ceylon Ltd. (Renamed as Nepal Credit and Commerce Bank Limited on 10th
September 2002)

C. Meaning of Commercial Bank:

A commercial bank is a type of bank that provides services such as accepting deposits, making
business loans, and offering basic investment products.Commercial bank can also refer to a bank
or a division of a bank that mostly deals with deposits and loans from corporations or large
businesses, as opposed to individual members of the public (retail banking).

In the US the term commercial bank was often used to distinguish it from an investment bank
due to differences in bank regulation. After the great depression, through the Glass–Steagall Act,
the U.S. Congress required that commercial banks only engage in banking activities, whereas
investment banks were limited to capital markets activities. This separation was mostly repealed
in the 1990s.

Functions of commercial banks:

Commercial banks perform many functions. They satisfy the financial needs of the sectors such as
agriculture, industry, trade, communication, so they play very significant role in a process of
economic social needs. The functions performed by banks, since recently, are becoming customer-
centered and are widening their functions. Generally, the functions of commercial banks are
divided into two categories: primary functions and the secondary fun

Primary Functions of Commercial Banks

Commercial Banks performs various primary functions some of them are given below

1.Accepting Deposits :
Commercial bank accepts various types of deposits from public especially from its clients. It
includes saving account deposits, recurring account deposits, fixed deposits, etc. These deposits
are payable after a certain time period.

2.Making Advances :
The commercial banks provide loans and advances of various forms. It includes an over draft
facility, cash credit, bill discounting, etc. They also give demand and demand and term loans to all
types of clients against proper security.

3.Credit creation :
It is most significant function of the commercial banks. While sanctioning a loan to a customer, a
bank does not provide cash to the borrower Instead it opens a deposit account from where the
borrower can withdraw. In other words while sanctioning a loan a bank automatically creates
deposits. This is known as a credit creation from commercial bank.

Secondary Functions of Commercial Banks

Along with the primary functions each commercial bank has to perform several secondary
functions too. It includes many agency functions or general utility functions. The secondary
functions of commercial banks can be divided into agency functions and utility functions.

Agency Functions : Various agency functions of commercial banks are

o To collect and clear cheque, dividends and interest warrant.
o To make payment of rent, insurance premium, etc.
o To deal in foreign exchange transactions.
o To purchase and sell securities.
o To act as trusty, attorney, correspondent and executor.
o To accept tax proceeds and tax returns.

General Utility Functions : The general utility functions of the commercial banks include
o To provide safety locker facility to customers.
o To provide money transfer facility.
o To issue traveller's cheque.
o To act as referees.
o To accept various bills for payment e.g phone bills, gas bills, water bills, etc.
o To provide merchant banking facility.
o To provide various cards such as credit cards, debit cards, Smart cards, etc

List of commercial banks are shown on appendix 1:

C.Introduction of Nepal SBI Bank Ltd. with its locations:

Nepal SBI Bank Ltd. is an associate of State Bank of India. It was established under company
Act 2021 B.S. and registered under commercial bank Act 2031 B.S. It received operation
approval in 16th Baisakh 2050 and started operation since then.

At the time of establishment the authorized share capital of Nepal SBI Bank Ltd. was Rs.24crore
and paid-up capital was Rs.12crore. Its share capital was divided as State Bank of India share
capital was 50 %, Employee Fund share capital was15 %, Agriculture Development Bank share
capital was 5 % and Public share capital was 30 %.

Nepal SBI Bank Ltd. aspires to provide total customers satisfaction by constantly striving to meet
the changing banking needs wants and expectations -both explicit and implied, of the customers.
Nepal SBI Bank Ltd. strives to contribute to the betterment of the country's economy by creating
job opportunities and promoting the development of the Nepalese entrepreneurial spirit both the
nationally and globally.

The core philosophy of NSBL:

Vision:
We desire to be “Banker to every Nepali”.

Mission:
“My Nepal SBI Bank: My customer First,
My Nepal SBI Bank: First in customer satisfaction”.

Slogan:
“Bisudha banking aru kehi hoina.”

Unique Selling Preposition:

The unique selling preposition (USP) of Nepal SBI Bank is “indeed our people and we are also
committed to creating a compelling employee value preposition. We firmly believe that our
sustainability is depended on meeting our employees’ expectations in terms of leadership,
 remuneration, challenging, fair employment practices, career development and sound industrial
relations.”

Six key areas of NSBL:

 Caring for customers’ involving needs and expectations by providing them with products and
services.
 Creating a great place to work.
 Exemplary governance and accountability.
 Working in harmony and in mutual satisfaction with our business partners.
 Providing returns in the investment of our owners.
 Investing in local communities in which we operate for the benefit of the society.

Nepal SBI Bank Ltd. believes that in the active pursuance of it's cooperate mission. It has been
able to develop a distinct personality, which is by now well known in the business as a market
driven company that has distinctive features as follows.

• Higher interest rates on deposits

• A team of highly motivated, professional and trained staff
• Customer-friendly environment
• A hassle free, computerized system
• Greater flexibility in loan schemes
• Convenient industrial loans
• Personalized, efficient, prompt and courteous services

Nepal SBI Bank Ltd. performs banking functions through institutionalized mobilization of
savings and investment to promote the economic interests of Nepalese people. It deposits the
savings from Nepalese people giving them interest as per the company. Those deposits are invested
in various profitable alternatives. Providing industry loan, trade loan, overdraft loan, etc are the
main investment. From this, Nepal SBI Bank Ltd. gets interest higher than they do pay and
commissions which is the main source of its income.

Nepal SBI Bank Ltd. having such distinctive features is providing different types of services to the
public. That is the area of service activities, which are as follows:

1. Collection of Deposit
2. Trading and Commercial loan
3. Industrial loan
4. Overdraft loan facilities
5. Opening letter of credit
6. Loan on collateral
7. Issue of bank guarantee
8. Discounting bills of exchange
9. Foreign exchange transaction
10. Acting as an agent
11. Accepting valuable material for safe custody.
12. Providing safe deposit lockers
13. Remittance of money
14. Others

Location:

For handling the growing business volume and also for providing required support to the proposed
branch expansion program of the bank, the total no of staff (excluding three seconded staff) was
enhanced during the year and reached the level of 135 according to their annual report. Nepal SBI
bank Ltd. is providing prompt services to its customers by using advanced banking software name
"Bancs-2000" It has extended its services in different part of the kingdom of Nepal. SBI Bank Ltd.
has all together one corporate office and thirteen branches operating in Nepal.

Region Outlets ATM

Eastern 14 12
Central 30 36
(KTM Valley) (23) (28)
Western 15 21
Mid-Western 04 03
Far-Western 03 03
Total 66 75

e. Management, Capital and Ownership Structure:

Management:

To direct the Nepal SBI Bank Ltd. there are board of directors.

Name Designation
Mrs. Hasana Sharma Chairman
Mr. R. Karthikeyan Director
Mr. Giridhara Kini Director
Mr. Manoj K Agrawal Director
Mr. Niranjan K Tibrewala Director

Mr. Gokul Ram Thapa Professional Expert Director

 Mr. Alok Kumar Sharma Managing Director

Capital and Ownership structure:

Capital Amount
1. Capital Structure of Year 2069/2070
Authorized Share Capital: 38%
30,000,000 Ordinary Shares of Rs. 100 each 3,000,000,000

Issued Share Capital: 31%

23,647,149.00 Ordinary Shares of Rs. 100 2,364,714,900
each

Paid-up Share Capital: 31%

23,557,385.04 Ordinary Share of Rs. 100 2,355,738,504
Each
2. Ownership Capital:
SBI Bank Ltd. 50%
Employment Provident Fund 15%
Agriculture Development Bank 5%

General Public 30%

 f.Product and Services offered:
Its product and services are highlighted as under: -

Credit Card Facility:

Customers can purchase the product in the shop and present their Credit Card instead of money. It
is used instead of money. A customer deposits certain amount of money in the bank and the bank
provides Credit card to their customer. For instance, if a customer has deposited Rs.3, 00,000 and
is provided a Credit Card then he can make purchase by presenting that Card instead of money.
When he purchases the total amount of Rs.3, 00,000 then he cannot use that Card any more.

Indreni Bachat Yojana:

Under this scheme, any individual including minor (account to be operated by guardian) can open
the account. Customer will get higher interest rate for maintaining higher balance in the account.
The interest is calculated on daily basis.

Features:
 Minimum Balance: Rs. 10,000/- for interest calculation.
 Free Cheque Book.
 Free Internet Banking Service
 Any Branch Banking Service free of charges

Automatic teller machine (ATM):

Now a days bank allow customer to deposit and draw money from their accounts through
Automatic Teller Machine. NSBL ATM gives a customer access to the convenience of 24 hour
 banking in any of its 35 ATM locations nationwide plus more than 150 ATMs of national financial
institutions that are part of VISA network, plus over 16000 ATMs of State Bank of India in India.

Various Loans and advances Schemes:

 Corporate and Business Loans:

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

 Convenient Loan:
This is a loan product designed to meet the needs of Small and Medium Sized Enterprises in a very
convenient manner to the borrowers.
 Mortgage and Mortgage Plus:
Both represent personal credits given to individuals purely on the basis of their
income level.

 Other Retail Loans:

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

E-banking Facility:

For the comfort and ease of valued customers NSBL provides E-banking facility “Nepal SBI
Online Bankin” with free of cost. E-banking can be operated by the account holder in two different
ways, which mu8st be mentioned earlier at the time of applying request for e-banking facility.
Transaction plus view and view only are the two modes of e-banking facility which customers can
choose as per their requirement. Customer who do not have must time to visit the bank can operate
their account from the comfort of their home or offices.

Bharat Yatra Card (BYC):

BYC is a type of ATM card provided by NSBL to its customers who want to make a visit to India.
Like any other ATM card BYC is a normal ATM card but provided only to those customers who
are travelling to India for other than business purpose. To get a BYC a customer should open a
saving account in NSBL and with the certain cahrges customers can get BYC instantaneously.
Card ig given to them within few minutes.

Nepal SBI Remit:

Nepal SBI Remit is a customer focused Money Transfer product enabled

by state of art web-based technology and is brought to you by Nepal SBI Bank Limited, a leading
bank of Nepal. The Bank has a wide network covering all major cities, towns and villages of the
country and is capable of paying at more than 56 branch locations across Nepal. However, we
will be adding more payout agents to cover all parts of Nepal very shortly.

Utility Bill Payment:

Customers—both accountholders and non-accountholders—of the bank can pay bills of following
services at the bank’s branches free of charges:
 NT PSTN telephone,
 NT Postpaid mobile,
 NT ADSL Internet

Swarnim Bachat:

Under this scheme, any individual and institution can open the account. The interest is calculated
on daily basis payable quarterly.
Features:
o Minimum Balance: Rs. 50,000/- for interest calculation.
o Free Cheque Book.
o Free Internet Banking Service.
o Free Any Branch Banking Service.
o Free issuance of Debit/ATM card and waiver of renewal charge.
o Special Discount on Remittance Charges.

Varistha Nagarik Bachat Khata:

Saluting your years of service to this great nation and society, we have brought peerless banking
account service to you—Varistha Nagarik Bachat Khata. The respected senior citizen—aged 50
and above—can open this Saving Account with minimum balance of Rs. 500/- only. Additionally,
the Accountholder gets bundle of additional benefits;
 No restrictions on withdrawal from account subject to maintenance of
required minimum balance
 50% concessions on rental charges for hiring safe deposit locker (Subject
to Availability)
 50 % concession on SWIFT and RTGS only (Except on Exchange & Commission)
 50 % concession on commission on Bharat Yatra Card
 Free Account Statement (On request)
 Free Any Branch Banking Service
 Free Nepal SBI Bank Debit Card
 Free Internet Banking Service

g.Organizational Structure:
An organizational structure can be defined as the formal and informal framework of policies and
rules, within which an organization arranges its lines od authority and communications, and
allocates rights and duties.
Corporate Governance Structure
Compliance with all applicable legislations, regulations, standards and codes is an essential
characteristic of organizational culture at Nepal SBI Bank. The Board of Directors is the apex
decision making body and has ultimate responsibility for governance. The board monitors
compliance with these means of management reports, which include information on any significant
interaction with all key stakeholders.

Structure shown on appendix 2:

2.Introduction of the Subject (Deposit):

Development of trade, commerce and industry are the requisite for the attainment of the economic,
social and political goals of any country, is based on macroeconomics. To fulfill the purpose of
planning, financial function more often dominates the other function. But there is always lack of
finance because the national resources are not fully utilized for the productive purposes in
developing countries. In developing countries for rapid development of the economy there should
be proper mobilization of resources. Commercial banks play very important role in mobilizing the
resources in any developing country by removing the habit of hoarding, developing the banking
habit among the people, collecting the small scattered resources in one bulk and utilizing the in
further productive purpose and, consumable and even to the need of the government. Commercial
banks credit in the desired sectors constituting the significant part of the activities.

Now a day, there are different commercial banks emerging to contribute in national economy. The
term commercial bank is used for those types of institutes, which are mainly concerned for the
development of trade, commerce and industry, which are the prime requisites for the attainment of
economic, social and political purpose of the country. Financial services are fuel to provide energy
to move the vehicle of economic growth.

Thus, commercial banks are the main institutions, which are meant for the collection and utilizion
of small-scattered savings of the people. The commercial banks utilize the collected resources by
financing in productive, distributive the main function of the banks is to accept money spread in
the general public as deposit and utilize the collected resources properly. General public deposits
their savings for safety and they also get interest in advancement. Not only this, they can withdraw
their money when they need. Deposit, is the savings of people or even of industrialists, which in
not required for them in the very moment, which is accepted, by banks and later on they get
interest.

Deposit accounts are also one of the important sources of banks' funds, in order to attract customers
the banks offer attractive facilities to different types of deposits account holders. In order to avoid
miniature expenses of our daily life among society banks has been providing sound interests
because of the hard global competition and they need deposits like raw materials in production
process.
 Banks are providing different types of deposit account to the general public taking consideration
of their different financial status. Here are some deposits accounts (concerned with my study),
listed below:

a) Saving Deposit Account

b) Current Deposit Account
c) Fixed Deposit Account

a.Saving Deposit Account:

Depositors can deposit any amount of money in their saving deposit account but there are certain
restrictions in withdrawal of money. If the depositor needs to withdraw a high amount, he is
required to inform the bank authorities in advance. If his withdrawal exceeds the specified limit
and does not even intimate the bank in advance, he will have to forgo his interest earning for the
concerned month. The depositor is given cheques facility. Presently the rate of interest offered by
commercial banks in Nepal on saving deposit account is 2 to 3 % p.a.; however, the individual
bankers are always free to offer high rates. Such saving accounts greatly encourage capital
formation in the country.

Procedure to open Saving Deposit Account:

To open the Saving Deposit Account a customer must fill the form provided by the Nepal SBI
Bank Ltd. including following details:

a. Name of the account to be opened. (i.e. Saving Deposit Account)

b. Full name of the account opener.
c. Status of the account opener. (Individual, company, club, society, partnership, others)
d. Mailing address of the account opener. (Post box no., fax no., phone no.)
e. Citizenship or driving license number. (This is to be filled for the individual account opener, in
case of foreign nationalities passport number, center of issue, date of issue, date of expiry and
verification signature is needed.
f. Mode of operation. (Single, former or survivor, both or survivor, either of survivor, latter
of survivor, others)
g. Specimen signature or signatures. (If a Partnership Company opens an account or two
or more person opens then all the partners should make specific signatures.)
h. Name, address, account number and signature of the introducer. (Rubberstamp if the
introducer is a company or an institution.)

Procedure to close Saving Deposit Account:

Saving Deposit Account is closed in the request of an account holder. To close this account, an
account holder must present a written application addressing to the Manager of the Nepal SBI
Bank Ltd. including following details:

a. Full Name of the account holder.

b. Closing charges. (To close this account closing charges Rs.300.00 is to be paid.)
 c. Signature of the account holder or holders. (Rubber-stamp if the account is of a company or
an institution.)

b.Current Deposit Account:

Current deposit account refers to such an account opened by the depositor in which he can deposit
any amount any time and also withdraw any amount any time as required. The account holder can
deposit and withdraw any amount of money at one instance of in several installments. Such an
account is very useful for traders who require to deposit or withdraw money very frequently.
Money in current deposit account can be deposited for short period or long period without any
restriction. Due to the liquidity on the deposits provided by the bank, generally very low or no
interest is given to the depositor; In fact the bank could be changing some incidental change from
the customers for the services rendered. The minimum amount of money required to open such an
account is other formalities to be fulfilled depend upon the rules and regulations of individual
requires even several times in one day through cheques. The current deposit account is also
known as 'Demand Deposit' or 'Demand Liabilities'
Procedure to open Current Deposit Account:

To open the Current Deposit Account a customer must fill the form provided by the Nepal SBI
Bank Ltd., this includes the following details:

a. Name of the account to be opened. (i.e. Current Deposit Account)

b. Full name, address, and occupation of the account opener. (Name of the company or institution
if an account is of any company or institution.)
c. Status of the account opener. (Individual, company, club, society, partnership, others)
d. Mailing address of the account opener. (Post box no., fax no., phone no.,)
e. Citizenship or driving license number. (This is to be filled for the individual account opener, in
case of foreign nationalities passport number, center of issue, date of issue, date of expiry and
verification signature is needed.)
f. Mode of operation. (Single, former or survivor, both or survivor, either of survivor, latter of
survivor, others)
g. Specimen signature or signatures. (If a Partnership Company opens an account or two or more
person opens then all the partners should make specimen signatures.)
h. Name, address, account number and signature of the introducer. (Rubber stamp if the
introducer is a company or an institution.

Procedure to close current Deposit Account:

Current Deposit Account is closed in the request of an account holder. To close this account, an
account holder must present a written application addressing to the Manager of the Nepal SBI
Bank Ltd. including following details:

a. Full Name of the account holder. (Name of the company or institution if an account is of any
company or institution)
b. Closing charges. (To close this account closing charges Rs.300.00 is to be paid.)
c. Signature of the account holder or holders. (Rubber-stamp if the account is of a company or an
institution.)

c.Fixed Deposit Account:

This account scheme allows a customer to earn higher rate of interest for those amounts, which a
customer is confident that he will not require the amount for certain period. The scheme offers
higher rate of interest than savings account. The interest rates vary with the period for which
amount is kept in fixed deposit. The interest rates vary from time to time

Procedure to open fixed Deposit Account:

To open the Fixed Deposit Account a customer must fill the form provided by the Nepal SBI Bank
Ltd., this includes the following details:

i. Name of the account to be opened. (i.e. Fixed Deposit Account)

j. Full name, address, and occupation of the account opener. (Name of the company or institution
if an account is of any company or institution.)
k. Status of the account opener. (Individual, company, club, society, partnership, others)
l. Mailing address of the account opener. (Post box no., fax no., phone no.,)
m. Citizenship or driving license number. (This is to be filled for the individual account opener, in
case of foreign nationalities passport number, center of issue, date of issue, date of expiry and
verification signature is needed.)
n. Mode of operation. (Single, former or survivor, both or survivor, either of survivor,
latter of survivor, others)
o. Specimen signature or signatures. (If a Partnership Company opens an account or two or more
person opens then all the partners should make specimen signatures.)
p. Name, address, account number and signature of the introducer. (Rubber stamp if the
introducer is a company or an institution.

Procedure to close Fixed Deposit Account:

Fixed Deposit Account is closed after the maturity of the account. To close this account, an account
holder must present a written application addressing to the Manager of the Nepal SBI Bank Ltd.
including following details:
a. Full Name of the account holder, (Name of the company or institution if an account is of any
company or institution)
b. Account number
c. Signature of the account holder or holders. (Rubber-stamp if the account is of a company or an
institution.)

3.Objective of the study:

There are serious handicaps in economic development, which arises from capital deficiency. Under
these circumstances banks and other financial institution can play an important role and remove
the difficulty of capital by stimulating savings and investment. In Nepal, people are generally
motivated to invest in real estates, jewelry, foreign exchange and speculative activities, which is
not desirable for economy and social point of view. It might be due to the lack of banking and
financial institutions and their information. If there will be enough banking facilities such
resources can be converted in active capital and productive sectors which otherwise remain
unproductive, ideal or unutilized. In order to meet economic development banking system has to
undergo certain changes in its structure and organization. A strong financial structure is important
in influencing the deposit collection and mobility.

However, the main objectives of the study are:

 To show the trend of deposit position during the period 2064/65 BS to 2069/70 BS.
 To show the trend of total deposit position during the period 2064/65 BS to 2069/70 B.S.
 To understand account opening procedures at NSBL.
 To get acquainted with performance of NSBL.
 To know about the customer’s responses towards the services provided by the bank.
 To study how customer service is handled by the bank.
 To acquire the general idea on the software packages that the bank follows.
 To develop interpersonal skills and the skills of networking in the real work environment.

4.Significance of study:
Deposit collection is one of the main problems of under-developed county like Nepal. Due to
various difficulties or even ignorance of the people of under-developed countries such resources
have not been utilized such as by hoarding. Hoarding, the bad habit of the society, is one of the
main problems. So, bank like Nepal SBI Bank Ltd. plays vital role for accepting and, in turn,
mobilizing the resources and removing the habit of hoarding in pursue of rapid economic growth,
and make them habit of banking. The scattered resources are collected in one bulk and mobilizing
them in production purpose and even for providing other services to its member and to the society.
The main function of the Nepal SBI Bank Ltd is to:

Accept the Deposit:

Deposits are the lifeblood of the Nepal SBI Bank Ltd. as well as finance companies too. For that,
Nepal SBI Bank Ltd. accepts deposits and flows it in different sectors i.e. loans and advances etc.
But without utilizing the resources Nepal SBI Bank Ltd. could not be able to repay the deposits
including interest dividend to shareholders and could not recover the operating expenses.
Therefore, it should utilize the deposits in proper way for maintaining the Nepal SBI Bank Ltd.
entity and its members' welfare. Before the mobilization of the deposits, there should be deposit
itself. Nepal SBI Bank Ltd. should collect the small-scattered savings as deposits first and get them
ready for the mobilization. So, the study focused on deposits only. Mainly, the study consists of
deposits position and briefs about its significant utilization and covers to the position and the
characteristics of such deposits which has been mobilized as loan and advances and a glimpse of
interest rates as the Nepal SBI Bank Ltd. is currently providing to its depositors as well as the rates
of interest take from the loan and advances.
 5.Limitation of the study:
The internship period was completed gaining lots of knowledge and experiences but there were
some restrictions which somehow restricted or limited the comprehensive study. Those limitations
are listed below:

 Data presentation is one of the most important factors in discussing the problem, due to
thedependency upon secondary data the problem cannot be expressed in desired form.
 The data presentation of deposits is limited to the period of 2064/65 BS to 2069/70 BS. Although,
the study is made of Nepal SBI Bank Ltd., Bargachhi branch but the data is presented from
company annual report (study of the whole company).
 The deep analysis could not be done due to time constraint.

Moreover, Nepal SBI Bank Ltd. renders many services to its customers. However, the main service
of them is to accept deposits. Although, Nepal SBI Bank Ltd. is advancing many other facilities to
its customers and finally to the economy of the country, those aspects are ignored due to the
unavailability of the data, lack of time as well as the confidentiality of the concerned institution
and they may be broad enough for this study. So, the case study is limited to deposits only and
excludes other aspects. Due to the cutthroat competition of banking in Nepal, these days the
officials' does not provide us the confidential.

Methodology:
A research methodology defines what the activity of research is, how to proceed, how to measure
progress, and what constitutes success. It can be defined as “a particular procedure or set of
procedures”. The following methodology is used in this study and the preperation of this project
report.

6.1 Organization selection:

The internship program has been made an essential part of academic program in BBA, which aims
to expose the students to business management sector as well as industrial sector. It gives students
opportunity to apply theoritical knowledge they have gained so far into real, practical world. NSBL
was selected for the internship program as it is proved to be the good platform for career
develpoment and growth.

6.2 Placement:
The internee was appointed and placed in the customer service department of NSBL Bargachhi
Branch, under the supervision of Operation Incharge Mr. Nishant Kumar Karn. The internee got
an opportunity to learn a lot about the acivities carried out in operation department in particularly
the customer service department. It was a great platform to familiarize oneself with the corporate
culture.

6.3 Duration:
 The internee completed eight weeks of Internship from 24.07.2014 to 24.09.2014 as the partial
fulfillment of requirement of Bachelor in Business Administration (BBA) of Purbanchal
University (PU). The whole internship peroid was spent on the CSD, Remittance and cash
departments of NSBL, Bargachhi branch and worked as a full time internee.

Table# 1:
Details of internship at NSBL

Address Bargachhi branch

Working hour 10 am to 5 pm
Starting week 24.07.2014
Ending week 24.09.2014
Working duration 8 weeks
Internship supervisor Mr. Nishant Kumar Karn
Working department CSD (6 weeks)
Remittance department (1 week)
Cash department (1 week)

6.4 Data collection:

As we know that a lot of materials are needed in order to prepare this fieldwork, the material which
is important for my research work are collected from the Nepal SBI Bank Ltd and been categorized
them as primary and secondary data. They are briefly discussed below:

Primary data:

As for primary data, I collected through:

 Direct observation of working environment

 Interviews with the staff of Branch Office Bargachhi and branch office of Biratnagar.
 Direct interface with the walk-in customers.

Secondary data
The sources of secondary data collected are:

Internal sources:
a) Annual Report of the Nepal SBI Bank Ltd.
b) Brochures of Nepal SBI Bank Ltd.

External sources:
a) Banking & financial statistics of Nepal SBI Bank Ltd.
b) Books

7. Organization of the study:

This study has been organized into fie chapters. The contents of this chapter of this study are briefly
explained below:

Chapter one:
It deals with background, objectives, methodology, selection, placement, duration, data collection,
limitations and organization of study.

Chapter two:
It deals with:

a. Classification & Tabulation of data:

After the collecting the data they are classified and arranged in the tables with
columns and rows.

b. Presentation of data:
Various diagrams like pie charts and bar diagrams have been used in this report, in order
to present the given data clearly.

c. Analysis of data:

In order to analyze the given data clearly, I have used many statistical tools such as Arithmetic
Mean, Standard Deviation and Coefficient of Variation to analyze the data.

After completion of the above methods, I have done SWOT analysis in order to find out strength,
weakness opportunity threats analysis. Lastly summary and conclusion of the study and
recommendation are given.

Chapter three:
It deals with analysis of activities done.

Chapter four:
It deals with lesson learnt, summary, conclusion and recommendation and suggestion.
 Chapter 2
PRESENTATION AND ANALYSIS OF DATA

1.Interpretation & Analysis of Data

Deposits are one of the main sources for loans and advances. In any country, in the case of bank
the capital subscribed by the owners tends to play a distinctly subordinate role. Bank are highly
leveraged institutions depend heavily on attracting spreader savings of general public as deposits
as a basis for their asset acquisition. Although, there is considerable interest and invest it on various
alternatives.

Likewise, Nepal SBI Bank Ltd. also has to collect the deposits and invest in different sectors for
the fulfillment of the company's internal and external obligations and for the economic
development of the country. And for this, the most essential factor is to gather and accept scattered
savings of people as deposit first and utilize it, the interest rate is another influence able factor.

Here is the total deposit collection of Nepal SBI Bank Ltd. Corporate Office, Kathmandu from the
year 2064/65 BS to 2069/70 BS.

a. Current Deposit Account:

Its customers can open this account by reserving minimum cash balance of Rs.10, 000.00 and can
withdraw and redeposit money at any time during banking hour. The account holder doesn't earn
interest. This facility is especially for the business houses, government organization, etc.

Table # 2
Statement showing Deposit Position
In Current Deposit Account
From 2064/65 BS to 2069/70 BS

Fiscal Year Collection Total Balance Deposit

Increased/
Decreased
2064/2065 761682296 1199876179 323488413
2065/2066 1426373496 2626249675 664691200
2066/2067 951004571 3577254246 (475368925)
2067/2068 2359993191 5937247437 1408988620
2068/2069 1086697000 7023944437 (1273296000)
2069/2070 1300071000 8324015437 213374000

Source: Company annual report

The above table-1 & figure-1 shows the Current Deposit Account of Nepal SBI Bank Ltd.
Corporate Office, Kathmandu. During the period, Nepal SBI Bank Ltd. has collected the total
amount of Rs 8324015437.

During the year 2064/65 BS, the total collection was Rs.1199876179, which was increased by
Rs.664691200 in the year 2065/66 BS. Similarly, in the year 2065/66 BS, the total collection was
decreased by Rs.475368925, which were, increased by Rs1408988620 in the year 2067/68 BS and
in the year the 2068/69 it again decreased by 1273296000. Finally in the year 2069/70 it increases
by Rs.213374000 and the total balance were Rs.8324015437.

The above data shows that the collection capacity was gearing up. In the year 2064/65 BS the total
collection was Rs.1199876179, which were, increased slightly in the year 2065/66 BS. After the
year 2065/66 BS, the collection capacity has increased nearly by double in the year 2065/66 BS.

b. Saving Deposit Account:

Nepal SBI Bank Ltd. facilitates its customers by this account. Its customers can open this account
by reserving minimum cash balance of Rs.501.00 and can withdraw and redeposit money at any
time during banking hour. Its customers can have this facility for the unspecified period of time.
The account holder is paid interest for the balance amount at the rate of 2.25 % per annum
(Effective from 14.11.2002). This facility is especially for the individual person.

Table # 3
Statement showing Deposit Position
In Saving Deposit Account
From 2064/65 BS to 2069/70 BS

Fiscal Year Collection Total Deposit

Balance Increased/
Decreased
2064/2065 527237236 872860393 181614079
2065/2066 786711245 1659571638 259474009
2066/2067 902758609 2562330247 116047364
2067/2068 1060145989 3622476236 157387380
2068/2069 1274695000 4897171236 214549000
2069/2070 1633028000 6530199236 358332000

Source: Company annual report

During the year 2064/65 BS, the total amount deposited was Rs.872860393, which was increased
by Rs.259474009 in the year 2065/66 BS. Similarly, in the year 2066/67 BS, it was increased by
Rs.116047364. It was increased by Rs1157387380 in the year 2067/68 and further increased by
Rs.214549000 in the year 2068/69 BS. Similarly it was increased by Rs.358332000 in the year
2069/70.
The above data shows the collection capacity of the Nepal SBI Bank Ltd. was in the increasing
position. In the year 2064/65 BS the total collection was Rs.872860393 and in the following year
in 2065/2066 B.S. it increased dramatically. But unfortunately, its collection didn't rise in the next
two years. Now, in 2067/68 BS, it shows quite fruitful result in the collection.

c. Fixed Deposit Account:

Nepal SBI Bank Ltd. facilitates its customers by this account. This facility is especially for the
individual person. Customers can deposit money for a fixed period of time and cannot withdraw
before that certain time. They can deposit their money for minimum period of less than 3month
but regarding maximum period it has no limitation and are paid interest by the Nepal SBI Bank
Ltd. in the following rates (Effective from 14. 11. 2002)

Table # 4
Statement showing deposit position
Period Interest rate
In Fixed Deposit Account
From 2064/65 BS to 2069/70 BS
less than 3 months 2.50 %
less than 6 months 3.50 %
less than 1 year 4.50 %
less than 2 years 6.00 % per annum
less than 3 years 6.25 % per annum
3 years above 6.50% per annum
Fiscal Year Collection Total Deposit
Balance Increased/
Decreased
2064/2065 2383622602 3916272287 850972917
2065/2066 2100218551 6016490838 -283404051
2066/2067 2420298451 8436789289 320079900
2067/2068 2929350603 11366139892 509052152
2068/2069 3132677000 14498816892 203327000
2069/2070 3337575000 17836391892 204898000

Source: Company annual report

The above table-3 & figure-3 shows the Fixed Deposit position of Nepal SBI Bank Ltd. Corporate
Office, Kathmandu from 2064/65 BS to 2069/70 BS in Fixed Deposit Account. The total amount
deposited is Rs.17836391892.

During the year 2064/65 BS, the deposited amount was Rs.3916272287, which was decreased by
Rs.283404051 in the year 2065/66 BS. And again was increased by Rs.320079900 in the year
2066/67 BS. But there was inclination in deposit collection by Rs.509052152. in the year 2067/68
BS. And in the year 2068/69 deposit amount was increased by 203327000. In comparison to the
previous year, in 2067/68 BS deposit collection has decreased. Similarly, in the year 2069/2070
deposited amount was increased by 204898000, in comparison of previous year it has been
increased.
The above data shows that the amount of total collection is haphazard. The deposit collection in
2064/65 BS was Rs.2383622602. In the year 2065/66 BS the collection speed has decreased. In
comparison to 2064/2065 the collection speed was in top gear till 2067/2068. Showing fluctuation,
the bank was not able to collect as much as there was in the previous year.

d. Total Deposit Position:

Deposit is the soul of the body of the body of Nepal SBI Bank Ltd. It accepts scattered savings of
the public as deposits, in turn, pays interest on deposits. It has facilitated its different types of
customers by different types of accounts - Current Deposit Account, Saving Deposit Account
and Fixed Deposit Account.

From the above analysis, we have observed that the Nepal SBI Bank Ltd. has become successful
to collect sufficient deposits from the public. It has collected Rs.17836391892, in Fixed Deposit
Account, Rs.8324015437in Current Deposit Account and Rs.6530199236 in Saving Deposit
Account. Its Grand Total Deposit is Rs.2690606565. It is further explained in the table-4 and
figure-4 & 5, which shows Total Deposit Position.

Table # 5
Statement showing Total Deposit Position
From 2054/55 BS to 2059/60 BS

Fiscal Year Total Deposit Deposit

Increased/Decreased
2064/2065 3672542134 1356075409
2065/2066 4313303292 640761158
2066/2067 4274061631 -39241661
2067/2068 6349489783 2075428152
2068/2069 5494069000 -855420000
2069/2070 6270674000 776604000

Source: Company annual report

Total Grand Deposit: 32690606565

Figure # 6
Pie chart showing trend of Total Deposit Position
From 2064/65 BS to 2069/70 BS

The table-4 and figure- 5 shows the Total Deposit Position for the period 2064/65 B.S to 2069/70
BS. The Grand Total Deposit was Rs.32690606565
In the year 2064/65 BS, the total deposit was Rs.3616466725 that was increased by Rs.640761158
in the year 2065/66 BS. Similarly, in the year 2066/67 BS, the total deposit was decreased by
Rs.39241611 that was further increased by Rs.2075428152 in the year 2067/68 BS and was further
decreased by 855420000 in the year 2068/69 BS. In the year 2069/70 BS it will increased by
Rs.776604000 and the Grand Total Deposit was Rs.32690606565.

From the above data, it is obvious the Nepal SBI Bank Ltd. was able to collect sufficient deposits
from the public. In the year 2064/65 BS the total deposit was Rs.24925863565. In the year 2066/67
BS, and 2057/58 BS there was an increment in deposit. The total deposit was only nearly double
in the year.2067/68 BS in comparison to 2064/65 BS. In 2067/68 BS it slightly decreased.

Therefore, from the above data, it is obvious that Nepal SBI Bank Ltd. has become successful in
collecting sufficient deposits from its customers as well as it shows the fluctuation nature.

2. Mathematical Analysis:

Computation of Mean of Current Deposit Account (CDA), Saving Deposit Account (SDA) &
Fixed Deposit Account (FDA): -

(Amount in million)
 Fiscal Year X Y Z dl=X-951 d2=Y-902.76 d3=Z-2420.29
(CDA) (SDA) (FDA)
2064/2065 761.68 527.24 2383.62 -189.32 -375.52 -36.67
2065/2066 1426.37 786.71 2100.22 475.47 -116.05 -320.07
2066/2067 951.00 902.76 2420.29 0 0 0
2067/2068 2359.99 1060.15 2929.35 1408.99 157.39 509.06
2068/2069 1086.69 1274.69 3132.67 135.69 371.93 712.38
2069/2070 1300.07 1633.03 3337.58 349.07 730.27 917.29

Total Id1=2179.90 Id2=768.02 Id3=1781.99

We know,
Mean = A + Id
R (number of fiscal year)

So, by using formula we can calculate Mean of CDA, SDA and FDA

X (CDA) = 951+ 2179.90= 521.82

6
Hence, the Mean of CDA is 521.82

Y (SDA) = 902.76+ 768.02 = 278.46

6
Hence, the Mean of SDA is 278.46

Z (FDA) =2420.29+ 1781.99 = 700.38

6
Hence, the Mean of FDA is 700.38
Mean is the sum of all the observations divided by the number of observations. The mean of CDA
is 521.82, SDA is 278.46 & FDA is 700.38. It is the average amount that the typical value around
which most of the data tends to cluster.

Computation of Standard Deviation of Current Deposit Account (CDA), Saving Deposit

Account (SDA) & Fixed Deposit Account (FDA): -

(Amount in million)
Fiscal X X-x (X-x) 2 Y Y-y (Y-y) 2 Z (Z-z) (Z-z) 2
Year (CDA) (X-951) (SDA) (Y- (FDA) (Z-
902.76) 2420.29)
22064/2065 761.68 -189.32 35842.06 527.24 -375.52 141015.27 2383.62 -36.67 1344.69
2065/206 1426.47 475.47 226071.72 786.71 -116.05 13467.60 2100.22 -320.07 102444.8
6 0
2 2066/2067 951.00 0 0 902.76 0 0 2420.29 0 0
2067/206 2359.99 1408.99 1985252.8 1060.15 157.39 24771.61 2929.35 509.06 259142.0
8 2 8
2068/2069 1086.69 135.69 18411.78 1274.69 371.93 138331.92 3132.67 712.38 507485.2
6
2069/2070 1300.07 349.07 121849.86 1633.03 730.27 533294.27 3337.58 917.29 841420.9
4
(X-x) 2 (Y-y) 2 (Z-z) 2
Total =2387428 =850880. =171183
.25 65 7.71

We have,
Mean (CDA) = 951
Mean (SDA) = 902.76
Mean (FDA) = 2420.29

Standard Deviation = (K-k) 2

N
So, by using formula we can calculate standard deviation of CDA, SDA and FDA

(CDA) 2387428.25 = 630.80

6

Hence, the Standard Deviation of CDA is 630.80

(SDA) 850880.65 = 376.58

6

Hence, the Standard Deviation of SDA is 376.58

(FDA) 1711837.77 = 534.14

6
Hence, the Standard Deviation of FDA is 534.14

Standard Deviation is defined as the positive square root of the Mean of the square of the Deviation
taken from Arithmetic Mean. It is said to be the best measure of dispersion as it satisfy most of the
requisites of the good measure of dispersion. The Standard Deviation of CDA is 630.80, SDA is
376.58, and FDA is 534.14
Coefficient of Variation of Current Deposit Account (CDA), Saving Deposit Account (SDA)
& Fixed Deposit Account (FDA): -

We have,
A (CDA) = 951 SD (CDA) = 630.80
A (SDA) = 902.76 SD (SDA) = 376.58
A (FDA) = 2420.29 SD (FDA) = 534.14

We know,
Coefficient of Variation (CV= SD * 100 %). so, by using Formula of Coefficient of Variation
X

We can calculate (CV) of CDA, SDA and FDA

CV (CDA) = 630.80 * 100 % = 66.33%

951
Hence, The Coefficient of Variation of the CDA is 66.30 %

CV (SDA) = 376.58 * 100% = 41.71%

902.76

Hence The Coefficient of Variation of the SDA is 41.71%

CV (FDA) = 534.14 * 100 % = 22.07%

2420.29

Hence, The Coefficient of Variation of the FDA is 22.07%

The Coefficient of Variation of dispersion is based of Standard Deviation multiplied by 100 is

known as the Coefficient of Variation. It is an independent unit. So the distribution can be better
being compared with the help of Coefficient of Variation of their variability. Less the Coefficient
of Variation, more will be the uniformity, consistency, etc and more the Coefficient of Variation
less will be the uniformity, consistency, etc. Here, the Coefficient of Variation of CDA is 66.33
%, Coefficient of Variation of SDA is 41.71% and Coefficient of Variation of FDA is 22.07%.
The lowest Coefficient of Variation is of FDA and highest is of CDA and FDA is in pendulum.
Now it is obvious, the FDA of Nepal SBI Bank Ltd. is more uniform and consistent than CDA and
SDA. CDA of Nepal SBI Bank Ltd. is less consistent and uniform than SDA and FDA, SDA is
pendulum in comparison with FDA and CDA.

3. SWOT Analysis:
Among the various tools, SWOT analysis can be used to find out the internal and external changes
in the environment. SWOT analysis is conducted to find out the strength and weakness points as
well as the opportunity and threats of Nepal SBI Bank Ltd. The followings are based on the
information and data collected from primary and secondary sources.
 Strength:

1) It has strong financial position due to high deposit collection.

2) It has many branches in the kingdom on Nepal.
3) Now has installed ATM machine in New Road Branch.
4) Installation of advanced banking software named “Bancs-2000"
5) Any branch banking facility.
6) The bank has its transaction with most of the bank of the world.
7) It is located at the heart of the city where most of the business transaction takes place.
8) Bank provides its services to most of the large public institutions, corporate body, etc of the country.
9) Bank has installed SWIFT (Society for Worldwide Inter bank Financial Telecommunication)
facility in the bank with a view to ensuring smooth and efficient transmission of financial message,

Weakness:

1) Low deposit collection in Saving Deposit Account in comparison to other deposit account.
2) Few counters at the Newroad and Durbarmarg branches.
3) Still lack of modern technologies. Such as ATM, Credit Card.
4) There is no private parking in Biratnagar branches, which reflects the image of the bank.

Opportunity:

1) Employment opportunity due to increase in number of branches.

2) Inward & outward remittance facilities are also provided by the bank.
3) High motivation through different rewards and prizes, yearly bonus, home loan etc.
4) Staffs are trained by parent company SBI Bank Ltd. central office Mumbai India so there is a
maximum chance of promotion and traveling.

Threats:

1) Cutthroat competition in the market due to increasing numbers of commercial banks and financial
institutions in the country.
2) Small market size is also one of the most serious factors which can reduce the earning capacity of
the banks.
3) Political interference has been a constant factor in restricting many of the bank's operation

4. Five Forces Model:

Porter's Five Forces is a framework for industry analysis and business strategy development
formed by Michael E. Porter of Harvard Business School in 1979. Three of Porter's five forces
refer to competition from external sources. The remainders are internal threats. Porter referred to
these forces as the micro environment, to contrast it with the more general term macro
environment. They consist of those forces close to a company that affect its ability to serve its
customers and make a profit. A change in any of the forces normally, requires a business unit to
re-assess the market place given the overall change in industry information. The overall industry
attractiveness does not imply that every firm in the industry will return the same profitability.
Firms are able to apply their core competencies, business model or network to achieve a profit
above the industry average. A clear example of this is the airline industry. As an industry,
profitability is low and yet individual companies, by applying unique business models, have been
able to make a return in excess of the industry average.

Analysis of NSBL in relation to Five Forces Model:

The banking industry is very competitive as a number of commercial and development banks are
growing. The rivalry in banking sector is neck and there is cut throat competition among the banks
and bankers.

There are many ‘A’ class commercial banks in Nepal which gives cut throat competition to NSBL.
The main compititors of NSBL are ‘A’ class commercial banks and some well established
Development Banks. With the privatization in the banking sector many new banks with modern
technologies and competent human resource are coming to the market which is a threat to NSBL.

With the many banks in the industry delivering similar kinds of services to customers, customers
are being king of the market and fulfilling their expectation should be the prime objectives of
NSBL to retain existing customers and attract new ones. Identifying potential customers and
catering to their need to their level of expectation should be main objectives of NSBL.

Substitute product in case banking sector could be other financial institutions that provide similar
kind of services and facilities to customers. For NSBL threat from substitute products could be
those well established finance compies who offere high interest to customers in deposits and lends
high sum of amount by charging comperatively low rate of interest.

The main stakeholder of NSBL are government and Nepal Rastra Bank (NRB) who have keen
interest in the functioning of commercial banks. Government policies and rules of Nepal Rastra
Bank greatly affect the functioning of NSBL as it has to operate accordingly with the directions
given by NRB.
 Chapter 3
Analysis of the activities done
The internship program proved to be a great learning experience. The internee was provided with
a full and realistic view of workplace culture by the employees at operation and CSD, where the
internee could get the opportunity to integrate academic skills and knowledge in the practical and
professional setting that would help to cope up or deal with the professional challenges. Moreover
cooperation and proper assistance provided by the staffs in the operation and customer service
department is very much appreciable. In the existence of such a good and helpful environment,
knowledge could be gained to the fullest.

3.1 Activities done at NSBL:

Under the supervision of operation in charge of NSBL following activities are carried out during
the whole internship program:

Table# 6
List of activities performed

DEPARTMENTS PERFORMED TASKS

CSD Dealing with regular and new customers of the bank.

Advise customers about NSBL Bank’s products and services and respond
queries.

Providing different kinds of forms to customer such as Account opening f

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

Collecting necessary documents and checking forms of the customers req

for account opening procedures.

Filing application forms and writing different application on behalf of custo

on the request of customers.

Keeping record of the account opened, account closed, transfer of the acc
customer taking additional facilities such as Internet banking, SMS banking

Providing ATM cards to the cardholders.

 Providing the balance statement and balance certificate to the deman
customers after verifying the account holder signature.

Remittance Made payment to the customers receiving money from various parts of the w
through RTGS, SWIFT and Prabhu Money Transfer.

Recording and filing of RTGS, SWIFT and DD entries.

Helped customers to fill up various kinds of forms.

Cash Informing the client in case of cheque return.

Cash sorting

Handling queries of the customer regarding their cheques sent for clearing.

Brief discussion:

1.Account Opening:
Accounts are opened in the form of personal and corporate account. The various forms of personal
account are saving account, current account and fixed deposit account. Various schemes are
available according to the saving need of the customers.

The main duty of the internee in account opening was to provide customers with proper set of
account opening forms and give them proper information regarding the documents that should
presented and given by customer while opening an account in the bank. Likewise, account opening
forms submitted by customers should be thoroughly checked so as all the necessary information
are given and they are correct.

2.Issue Cheque Book and ATM Cards:

NSBL charge certain minimum fee on cheque book and ATM cards. When the account is opened
then the cheque book is prepared by the responsible staff and the cheque book is normally issued
after one day of opening of account. For the first time cheque book is given only to the account
holder but after that it can be delivered to the authorized person by the account holder.
 As the ATM cards of NSBL come directly from India, it takes minimum 40 days to deliver cards
to the customer. Visa card is provided to the customer, which can be used in any ATM machines.
The ATM card is delivered to the account holder only but in some special cases where the customer
is not able to come to receive the card he or she must fill the authorization form for giving authority
to other person to receive the card of account holder.

3.Issuance of Statement of Account:

Account statements are the statement that shows the transactions done by the respective account
number in certain period of time. Customers come frequently to get the account statement to know
their remaining balances, their all deposits and withdrawals. It helps them to analyze their
withdrawals and deposits properly. But there is limitation in giving the statement and that is
statements can be issued only up to last three and maximum six months upon the due request from
the customer. To get the account statement the customer must fill the statement slip placed in the
customer desk of the bank which includes the information like account number, name of the
account holder, signature of the account holder, and time duration i.e. from when to which date to
issue the statement. In case if the customer want a more official statement of the account then
balance certificate is issued to them by charging them certain amount.

4.Maintaining Records and Book-Keeping:

Various records like ATM cards, e-banking, swift, UTL bill payment etc is maintained in the bank
by operation department. And, the whole work was assigned to the internee during the internship
period.

5.Signature Scanning:

As signature of customer is very important and signature is the source of identity of any customer,
scanning of signature specimen cards should be done carefully. The internee also assisted staffs in
scanning the signature specimen cards.

3.2 Problems Identified in Customer Service Department:

During the course of internship, the internee identified the following problems:

In the CSD no any staff was available internee is taught at the first day of internship under the
supervision of operation incharge and he/she is responsible for carrying out all the activities from
onwards. These activities are account opening, handling customer queries, printing of account
statement, receiving cheques for clearing, various kinds of data entry and book keeping,
distribution of ATM cards, etc.

3.3 Problems Solved in CSD:

During the course of internship, the internee assisted in following ways:
The internee assisted in solving the customer queries and helped customers to fill up the
account opening forms.
 The internee helped in printing out the account statement.
The internee assisted in distributing ATM cards and cheque books.

Chapter 4
LESSON LEARNT, SUMMARY AND CONCLUSION
AND RECOMMENDATION AND SUGGESTION

4.1 Lesson learnt:

The first and the most important thing learnt throughout the internship period were to deal with
the real world situations and how to work and behave in the corporate

Learnt about the corporate culture

The exposure to practical environment has increased the experiences of internee and confidence
to tackle with the real world problems
Learnt how to behave with the seniors and colleagues and make good relationship with
them. Learnt how to speak, function and work in corporate way.
Learnt a way to answer the queries of customers and provide them with best
possible solutions.

Customer queries are needed to be answered in a friendly way so as to retrain them in the organization.

Learnt the functioning of Customer Service Department.

Learnt to handle customer complaints.

Learnt account opening procedures.

Learnt basics about E-banking procedures.

Learnt reconciliation of ATM cards.

Summary and Conclusion:

An efficient bank can contribute a great deal to nation's overall economic development through
efficient allocation of financial resources. It plays vital role in meeting financial need of the people
as well as country, which becomes more diverse and complete as the economy develops. For the
economic development without inflationary pressure in the economy, mobilizations as well as
canalization of resources in the productive sectors are important but for this important fact are that
the deposit should be collected first. No doubt bank play a crucial role for the economic
 development. These types of institution are most important for accelerating economic growth in
the country. It is quite true that a strong banking institution is of great need for developing country
like ours because all the economic condition are based on the banking institution and development
of the country as well as general public depends upon the active participation of the banking
institution in the different activities in the country.

This study confine to a bank, 'Nepal SBI Bank Ltd'. In this study area, deposits of the general
public are the main resources of Nepal SBI Bank Ltd. funds. They are facilitating the depositors
by providing a bit higher rate of interest on deposits. In this study, it was found that deposits are
collected sufficient to fulfill their internal and external obligations.

During the period Nepal SBI Bank Ltd. has become able to collect Total amount of
Rs.17836391892 in Fixed Deposit Account, Rs.8324015437 in Current Deposit Account and
Rs.6530199236 in Saving Deposit Account. The above data shows that Fixed Deposit Account is
more than double of Current Deposit Account. It is obvious, individual people like to deposit
money for safety. On the other hand, it also reflects that individual people are not interested to
invest their money in any productive sectors, they are idling their money. Similarly, in the Current
Deposit Account too, deposit is high which reflects the same not investing habit of Nepalese
people. Nepalese people are extremely interested to invest money in jewelry, real state, etc. Due
to such habit of Nepalese, investment activities in productive sectors are not practiced as a result
economy of Nepal is becoming worse day by day.

The basic purpose of the fieldwork is to study the depository services provided by Nepal SBI Bank
Ltd. its position and interest rates. It has become successful in collecting sufficient deposits from
public by providing different types of deposit accounts suitable for every type of customers. It is
providing sound interest so as to attract the customers. It has become successful in collecting huge
deposits in Current Deposit Account, Saving Deposit Account and Fixed Deposit Account.

In the conclusion, we can say that Nepal SBI Bank Ltd. has become successful in collecting
sufficient deposits.

4.3 Recommendation and Suggestion:

During the visit to the Nepal SBI Bank Ltd., it was exciting as well as interesting too. The staffs
were very kind, friendly and helpful. They proved themselves as a kind-hearted person by
providing all the information and data, which are needed for my research work without any
hesitation.

Although the bank is operating or functioning efficiently, the bank has to consider about certain
factors in order to function more efficiently and effectively to survive in this competitive
environment. Some of them are:

1. It should expand its branches in the remote areas, which will help to mobilize internal savings of
the country.
2. It should use advanced technologies like ATM machines to provide prompt services to the
customers.
3. It should launch new products like Credit Card, facility so as to attract new the customers.
4. It should try to increase deposit capacity in all the accounts by providing different attractive prizes
to the customer.
5. It should provide prompt services by providing 24 hours banking facility, more counters, less legal
procedure for drawing loan.
6. It should provide 365-day service from all its braches as provided by the New Road branch to its
customers.

Lastly, Nepal SBI Bank Ltd. should carry on with its quality services to the country with loyalty
and devotion. I wish for its bright future.