AN INTERNSHIP REPORT ON GENERAL

BANKING ACTIVITIES OF NEPAL SBI

BANK LIMITED

Submitted by:
Binita Bhandari
Victoria college
PU Registration Number:
Exam Roll No:

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

In partial fulfillment of the requirement for the

degree of
Bachelor of Business Administration (BBA)
Ghorahi, Dang

June, 2019

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 DECLARATION

This Internship report entitled "General Banking Activities of Nepal SBI Bank
Limited” submitted to Victoria International College, Faculty of Management,
Pokhara University is our original work done in the form of partial fulfillment of the
requirement of Bachelor of Business Administration (BBA) under the supervision of
Mr. Bamdev Bhandari.

Signature…………………

Mrs. Binita Bhandari

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 ACKNOWLEDGEMENT

This report has been created for the partial fulfilment of the requirement for the
Bachelor’s degree in Business Administration (BBA). The basic purpose of this
Internship Report is to introduce and make familiar with the actual professional lives
and environments of different organization in terms of its Operation, Management
and their day to day transaction’s functioning. Such sort of Internship work helps us
to know about working environment of organization.

We would like to extend our deep gratitude to all those respondents without whose
support this report would not have been completed.

At first, we would like to express our gratitude to Mr. Kul Bir Chaudhary,
(Principal) and Mr. Bamdev Bhandari (Report Supervisor) for suggesting and
constant guidance for preparing this report.

We would like to take this opportunity to thank Nepal SBI Bank Limited for
providing an opportunity to hold an internship at Ghorahi branch. We would like to
extend special thanks to Mr. Pawan Ghimire (Branch Manager) for granting this
chance to learn.

we would also like to express our special thanks and my friendliness toward all the
department staffs of Nepal SBI Bank Limited for providing us a friendly and
enjoyable working environment during all those weeks. This has been a really
present time working around those persons.

Finally, our deepest regard to Ms. Pushpa Budhathoki (CSD) and friends for
helping me directly or indirectly.

Binita Bhandari

June, 2019

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 ABBREVATIONS
ABBS : Any Branch Banking Service

A/C : Account

ATM : Automated Teller Machine

AOA : Article of Association

BBA : Bachelor of Business Administration

CCD : Credit to Capital plus Deposit Ratio

CRR : Cash Reserve Ratio

CSD : Customer Service Department

EPS : Earning per share

FD : Fixed Deposit

NIC : Nepal Industrial and Commercial

NRB : Nepal Rastra Bank

RD : Remittance Department

ROA : Return on Assets

SLR : Statutory Liquidity Ratio

SMS : Short Message Service

SWOT : Strength, Weakness, Opportunities and Threat

SWIFT : Society for Worldwide Interbank Financial Telecommunication

T.T : Telex Transfer

P.A : Per Annum

P.U. : Pokhara University

PE : Price Earning

VISA : Visa International Service Association

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Table Contents Page no.

Titles
Declaration………………………………………………………................................I
Certificate from the supervisor……………………………………...........................II
Acknowledgements ………………………………………………...........................III
CHAPTER I INTRODUCTION ……..……………………………….......……..........1-19

1.1 Background …………………………………………………………...................1

1.2. Objective of the Study……………………………………………..….................2
1.3 Methodology……………………………………………......................................4
1.3.1 Organization Selection…………………………………………………………5
1.3.2 Placement..........................................………………………………………..…6
1.3.3 Duration…….......................................................................................................6
1.3.4 List of Activities Performed..............................................................................
1.4. Limitations of the Study………………………………………................…......
CHAPTER II INTRODUCTION OF BANKING INDUSTRY..................................12-17

2.1 Background……………………………………....................................................9
2.1.1 History of the Banks (World)……………………………………....................9
2.1.2 History of the Bank (Banking Activity)…………………………….................9
2.2 History of Bank in Nepal…………………….................……...........................10
2.2.1 Origin of Bank……………………………………..........................................10
2.2.2 Present Situation of Banking Industry………………………….....………..14
2.3. Meaning of Commercial Bank………………………………………................15
2.4 Functions of commercial Banks……………………………………………..….15
2.4.1 Primary Functions…………………………….................................................15
2.4.2 Secondary Functions………..…………………………………................16
2.4.3 Contingent Functions..........…………………………………...................16
CHAPTER III INTRODUCTION TO NEPAL SBI BANK LIMITED….............20-24

3.1 Background…………………………………….........................…..................20
3.2. Strategic Thrusts of the Organization…………………………………..........20

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3.3.Corporate Structure and Design………………………………………...............20
3.4 Branch Network of NSBL……………………………........................................20
3.5 Board of Directors…………………………..................................................21
3.6 Management Team..................................................................................................
3.7 Departments of the Organization.............................................................................
CHAPTER IV ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVE..20-28

4.1 Customer Service Department.................................................................................

4.1.1 Account Opening process and requirements.........................................................
4.1.2 Account closing process and requirements..........................................................
4.1.3 Preparing and distributing functions.....................................................................
4.1.4 Miscellaneous Functions......................................................................................
4.2 SWOT Analysis.......................................................................................................
CHAPTER V CONCLUSION AND LESSON LEARNT...........................................33-58

5.1. Conclusion............................................................................................................
5.2. Lesson learnt........................................................................................................
5.3 Recommendation ………………………………………………….....................37

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 CHAPTER I

INTRODUCTION

1.1.Background

Internship is the part of BBA curriculum as prescribed by the Pokhara University.

The curriculum of BBA is designed in such a way that the course can impart
theoretical as well as practical knowledge to the BBA students. BBA is a four years
bachelor degree program and it is run on the semester system.

The internship during the last semester is a must to complete the BBA degree.
Internship is an eight weeks program designed to provide students an opportunity for
a meaningful career-related experience in a real organizational setting before they
graduate. It gives the students an opportunity to practice and expand their skills and
knowledge learned in the classroom in substantive work situation. In addition, it will
help the students earn credit and increased marketability for the permanent job
search while learning more about a specific field and applying classroom knowledge
in a corporate environment. Bookish Knowledge is not as useful as the knowledge
obtained in the real world. The internship program provides an opportunity to learn
in the real work situation and an experience which can help the students achieve
their goals.

Financial sector plays a crucial role in the development of the economy. Banking
sector has a central role in stabilizing all the parts of the economy. Banking sector
has emerged as a major player in the service industry. With this truth in view the
internship program is designed to provide banking knowledge to the BBA students.

1.2. Objective of the Study

For any kind of work or study the objectives must be determined that helps to show
the way to achieve desired goals. The major objective of internship program is to
acquire learning as well as working experience and gain practical exposure in the
real-life working situation. The main objective of the program is to analyze the
activities being carried out in the banking industry and enhance knowledge and
practical skills during that period.

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 The specific objectives of the internship have been proposed listed below:

 To analyze the practical implication of theoretical aspects learnt.

 To be adapted to the real life working environment.

 To learn about the overall function of different departments of NSBL namely

Customer Service Department, Credit Department and Operations in brief.

 To identify the various services and facilities rendered by bank

 To develop the communication skills and interpersonal skills by communicating with

the customers in the CSD.

 To increase the PR by knowing different people.

 To learn about customers’ attitude towards the service provided by the bank.

 To learn the process of account opening, account closing, cheque issuing, delivering
of ATM and its pin.

 To access the strength and weakness of the branch.

 To gain the knowledge about E-banking services of the bank.

 To analyze the position of the bank.

1.3 Methodology

This report has been prepared on the basis of two months internship experience
gained at Customer Service Department of Nepal SBI Bank. Interaction with the
staffs and the operational knowledge gained is the major source of primary data for
this study. Besides, the website of the bank, previous internship reports and the
bank’s annual report are the sources of secondary data.

1.3.1 Organization Selection

In order to select organization, I first personally visited and dropped my college

recommendation letter and my curriculum vitae at Nepal SBI Branch office,
Ghorahi. The bank accepted my request and I was provided opportunity to do my
internship at Nepal SBI Bank Limited, Branch Office at Ghorahi.

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 1.3.2 Placement

During the eight weeks of internship, intern was mostly placed in Customer Service
Department (CSD). However, the opportunity of gaining insight knowledge about
the operational process and other activities of various departments within the branch
was also provided in the bank. The encouraging and cohesive environment made the
process of learning easier.

1.3.3 Duration

As per the requirement of the BBA Curriculum, one has to complete eight weeks
internship period in the work place as per their partial fulfillment of BBA program
according to their specialization subject. The intern has started the internship period
effective from 12th September to 11th December (i.e. 8 weeks). During this period
the intern came to learn many more about the working environment, work procedure
and culture in customer service department.

1.3.4 List of Activities Performed

 Dealing with customer

 Account opening
 Issue of cheque book
 Assist customer to fill out the account opening form correctly and also obtain all
necessary document
 ATM card issuance
 Filing
 Providing information about different banking product and services
 Information dissemination to all customers.
 Doing various back office work like cheque binding, filing of documents, register
entry.

1.4. Limitations of the Study

It was a great opportunity to be an intern in the bank. The knowledge gained during
the course of internship was a rare feat. However the internship had some
limitations. The main limitations of internship are listed below:

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 Due to lack of time, study of each and every activities of the bank in depth was not
possible.
 Due to privacy policy maintained in an organization, unavailability of information
created a problem.
 Interns were not allowed to use the system and entered the cash premises.
 The prime source of information for report preparation was the informal questioning
with the CSD head and the observation of the activities as well as the active
involvement in the activities allowed to the interns.
 Busy schedule of organizations staffs made it difficult to share overall knowledge
they have.

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 CHAPTER II

INTRODUCTION OF BANKING INDUSTRY

2.1 Background

Bank is a financial institution which deals with the monetary transactions. The major
function of the bank is to accept deposits and providing loans. The bank attract
deposits from various investors by providing certain rate of interest, and investing
the accumulated funds as loans to others who are in need of fund by charging
slightly higher rate of interest than they provide to the depositors. Bank acts as an
intermediary who bridges the gap between the savers of fund and the users of fund.
Basically, banks are those financial services especially credit, saving, and payment
services and perform the widest range of financial functions of any business firm in
the economy.

Different scholars have defined bank in different ways. Some definitions of bank are
as follows:

According to Walter Leaf, “Bank is that institution or individual who is always ready
to serve money on deposit to be returned against the check of their deposits
(savers).”

According to R.S. Sayers, “Ordinary banking business consists of changing cash for
bank deposits and bank deposits for cash. Transferring bank deposits from one
person or corporation to another, giving bank deposits in exchange for bills of
exchange, government bond, the secured or unsecured promise for businessmen to
repay, etc. “

Banks are the most important pillars of an economy or economic system. They
actually do not create money but they mobilize money – which might be termed as
capitalization of money. The ultimate source that creates money cannot be other than
employment. Banks derive profit mostly from the differential between the level of
interest it pays for deposits and other sources of funds, and the level of interest it
charges in its lending activities. This difference in referred to as the spread between
the cost of funds and the loan interest rate.

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As pillars economic system, there are entities as a Central Bank, Commercial Banks,
Development Banks and other Financial Institutions.

Commercial Banks are financial intermediaries who raise funds primarily by issuing
checkable deposits (deposits on which checks can be written), savings deposits
(deposits that are payable on demand but do not allow their owner to write checks),
and time deposits (deposits with fixed terms to maturity). They then use these funds
to make commercial, consumer, and mortgage loans and to buy government
securities and municipal bonds. Though the main function of commercial bank is to
collect deposits from the depositors and to invest on profitable sectors by avoiding
risks, these days, the commercial banks are moving towards the micro financing
sectors like; Auto loan, Education loan, Professional loan, and Housing loan etc,
because of low risk and lack of proper and secured investing sectors.

2.1.1 History of the Banks (World)

The history of the word BANK is linked with the Italian word Banco (old one) both
meaning “Desk /Bench”, Greek word Bancus meaning “bench / table” and French
word Banque meaning a bench. Although the original trace to the present word bank
in not yet completely clear, they all mean that those words were intending to point
for bench.

The first bankers sat behind a little bench on the open street with their money piled
upon the bench in front of them. This was their “bank”, and when their money was
lost, then their bench was said to be broken. They used to exercise themselves in this
kind of business in the public places of trading cities seated themselves upon forms
with benches to write their letters, count their money, or to draw their bills of
exchange. When they failed, and became unable to pay their debts, their benches
were broken as a mark of infamy: from which the word bankrupt is derived. The
word “bankrupt” is of Italian origin, as in Florence the term bancarotta meant
“broken bench” hence a bankrupt had his bench broken.

2.1.2 History of the Bank (Banking Activity)

The history concept of banking activities deepens its toots to the past when people
started having their properties. People started the saving concept. People identified

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gold as a means to store their wealth. More the gold you have, wealthier you are than
others. Thus the wealth was compressed into the convenient form of gold brings one
disadvantage. Unless well hidden or protected, it is easily stolen. So there need a
safest place to hide gold.

In early civilizations a temple is considered the safest refuge; it is a solid building,

constantly attended, with a sacred character which itself may deter thieves. In Egypt
and Mesopotamia gold is deposited in temples for safe-keeping. But it lies there,
while others in the trading community or in government have desperate need of it. In
Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans
made by the priests of the temple. The concept of banking has arrived.

The first regular institution resembling what we call a Bank was established at
Venice, nearly seven hundred years ago. The increase of trade in 13th century Italy
prompted the revival of banking. The money changers of the Italian states developed
facilities for exchanging local and foreign currency. Soon merchants demanded
other services, such as lending money, and gradually bank services were expanded.

The first bank in the world was established in Venice in 1157 AD. Historians
conflict with facts. Some argue that the Bank of Venice (1157AD) was just a
chamber of loans and was not a perfect bank at all. Some believe that the first bank
to offer most of the basic banking functions known today was the Bank of Barcelona
in Spain. This bank held deposits, exchanged currency, and carried out lending
operations. It also is believed to have introduced the bank check. Three other early
banks, each managed by a committee of city officials, were the Bank of Venice
(1157AD), the Bank of Amsterdam (1609), and the Bank of Hamburg (1619). These
institutions laid the foundation for modern banks of deposit and transaction

2.2 History of Bank in Nepal

2.2.1 Origin of Bank

The modern history of banking in Nepal does not have a long history. It is still in its
infancy stage. It was flourished after financial liberalization policy adopted in 1980s.
While talking about the actual history, it is assumed that the history, it is assumed
that the history of coinage began from /around 5th century AD. Around the

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12th century Ad, silver coinage was in practice which made the scope of trade wider.
At the end of 14th century, the term “Tanka Dhari” meaning “Money Dealer” was
used.

In 1877 AD, Prime Minister Ranoddip Singh introduced financial and economic
reforms. “TejarathAdda” was established at that time to provide credit facilities to
the general public. Credit facility was given by “TejarathAdda” on the basis of
collateral of gold and silver. Government employees would get credit at ease
because government would pay them less to deduct the credit amount. Chandra
Shamsher extended the services of TejarathAddaoutside valley. TejarathAdda
extended credit facilities to more and more general public and did not accept deposit
from public. Due to this reason, TejarathAdda finally faced a crisis. People started
borrowing from money lenders who charged a high interest rate and other dues.
Although “kaushi Tosh Khana” was established during the regime of
PrithiviNararyan Shah, TejarathAdda is regarded as the foundation of modern
banking in Nepal.

In 1937, Nepal Bank Limited (NBL) with the co-operation of Imperial Bank of India
came into existence. NBL played dual role of commercial bank as well as central
bank until 26th April, 1956, on which date, Nepal Rastra Bank (NRB) was
established. NBL was a semi government bank. Rastriya Banijya Bank (RBB) was
established in 23rdJanuary, 1966. Nepal Industrial Development Bank (NIDC) was
established as a development bank in 1959 and Agricultural Development Bank
(ADB) was established in 1968. Since 1984 the ADB has also been allowed to do
commercial banking in selected urban areas with the aim to mobilize resources
domestically and channel funds to the agriculture and rural sector.

Nepal adopted financial liberalization policy in 1984 by amending Commercial

Bank Act 1974. Liberalization was adopted to welcome private sector in banking
industry and to increase competition among them.

2.2.2 Present Situation of Banking Industry

Prior to liberalization, at the age of 47 (1937-1984) years of banking industry, there

were only four players in the industry. They were NBL, RBB, NIDC, and ADB.

14
The pace of financial liberalization actually started when the government allowed
the entry of commercial banks in joint venture with foreign bank. As a reform
measure initiated in the year 1984, government allowed ADB branches to conduct
commercial banking business in the urban areas. A Credit Information Bureau (CIB)
was established in 1989 under the aegis of Nepal Bankers’ Association with the
objective of disseminating credit information among its member institutions.

Nepal Arab Bank Limited (NABIL) was the first joint venture bank established in
1984 A.D., joint ventured with United Arab Emirates Bank. Then two other banks,
Nepal Indosuez Bank Ltd. (Present: Nepal Investment Bank) with Indosuez Bank of
France and Nepal Grindlays Bank Ltd. (Present: Standard Chartered Bank Nepal
Ltd.) with Grindlays Bank of London were established in 1986 and 1987
respectively. Himalayan Bank Ltd. Joint ventured with Habib Bank of Pakistan and
SBI Bank Ltd. With State Bank of India were established in 1993 A.D. Nepal
Bangladesh Bank Ltd. With IFIC (International Finance Investment and
Commercial) Bank of Bangladesh was established in 1993 A.D. Bank of Kathmandu
joint ventured with SIAM Commercial Bank Public Co., Thailand was established in
1995 A.D. Nepal Bank of Ceylon (Present: Nepal Credit and Commerce Bank) joint
ventured with Ceylon Bank of Sri-Lanka was established in 1996 A.D. Everest Bank
Ltd. Joined hands with Panjab National Bank as a joint ventured bank in1997 A.D.

2.3. Meaning of Commercial Bank

A commercial bank is a type of financial intermediaries and a type of bank.

Commercial banking is also known as Business Banking. It is a bank that provides
checking accounts, savings accounts, and money market accounts and that accepts
time deposits. Commercial bank is the term used for a normal bank to distinguish it
from an investment bank or retail bank. It raises funds by collecting deposits from
businesses and consumers via checkable deposits, saving deposits, and term
deposits. It makes loans to businesses and consumers. It also buys corporate bonds
and government bonds. Its primary liabilities are deposits and primary assets are
loans and bonds. Commercial bank is the oldest bank in the banking history of the
world. In Nepal too, commercial bank in current year presents a new picture- a
picture of wider horizons and of new enterprise.

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In Nepalese context, Nepal Commercial Bank Act 2031 (1974), section 2(a) defines
“A commercial bank is one which exchange money, deposit money, accepts deposit,
grants loans and performs commercial banking functions”.

The commercial bank are those banks which perform all kinds of banking functions
as accepting deposit, advancing loans, credit creation, and agency functions. They
supply the financial needs of modern business by various means. They accept
deposits from public on the condition that they are repayable on demand or on short
notice. All the banks established under Commercial Bank Act 2031, Company Act
2053 and Central Bank 2058 are termed as Commercial Banks

2.4 Functions of commercial Banks

The functions of commercial banks are broadly classified into three types, which are
briefly explained below;

2.4.1 Primary Functions

Collections of deposits under various accounts and issue of loan in different sectors
are the primary functions of commercial bank .the primary functions are based on
the following categories:

a. Accepting Deposits

The first and most important functions of commercial bank are to accept deposits
from customers under three different accounts. It maintains fixed at time account,
savings Account and current account to provide banking service to customers. The
amount deposited in bank for fixed period is known as fixed time deposit. The
amount deposited under this type of account cannot be withdrawn before maturity.
The deposit in this account pays higher interest in comparison to other accounts
.Under savings, customers can deposit as well as withdraw money at any time. This
account also pays interest but less than that under fixed account. Similarly in current
account, customers can draw money many times in a day according to their
necessities in which the bank does not pay any interest to the amount deposited
under this account.

b. Providing Loans

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 The second important function of commercial bank is to provide various types of
loans in the field of trade, commerce, and industry and even to agriculture sectors.
Commercial banks lend their money to the needy borrower for short term, medium
term and long term by charging different rates of interest. Commercial banks issue
credit under the heading of cash credit, overdraft, loan and discounting of bills of
exchange etc.

2.4.2 Secondary Functions

The secondary functions of commercial bank are also known as agency functions.
The bank charges minimum fees for undertaking these functions. The secondary
functions of commercial bank are as follows;

a. Collections of Credit Instruments

Commercial banks receive are accept credit instruments such as cheque, bills of
exchange and bank drafts of customers and make payments against them.

b. Income Receiving and Payment

Commercials banks receive dividend, interest on debentures and bonds of customers.

They also receive and make payments of insurance premiums, rent and income taxes
of their customers.

c. Purchase and Sale of Securities

Commercials bank purchase and sale the securities like shares, debentures of their
customers in stock exchange and other capitals markets.

d. Remittance of money

Commercials banks remit the money of their customers from one place to another on
their request.

2.4.3 Contingent Functions

The contingent functions of commercial bank are also known as general utility
functions. It performs the followings types of activities.

 Safety of valuable goods as gold, diamonds and documents.

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 Issue of credit instruments such as travellers cheque, letter of credit, draft, master
cards etc.

 Exchange of foreign currency under the direction of NRB.

 Publication of monthly and annual journals, bulletins, reports.

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 CHAPTER III

INTRODUCTION TO NEPAL SBI BANK LIMITED

3.1 Background

Nepal SBI Bank Ltd. (NSBL) is the first Indo-Nepal joint venture in the financial
sector sponsored by three institutional promoters, namely State Bank of India (SBI),
Employees Provident Fund (EPF) and Agricultural Development Bank Ltd. (ADBL)
through a Memorandum of Understanding signed on 17th July 1992. NSBL was
incorporated as a public limited company at the Office of the Company Registrar on
April 28, 1993 under Registration. No. 17-049/50 with an Authorized Capital of
Rs.12 Crores and was licensed by Nepal Rastra Bank on July 6, 1993 under license
No. NRB/l.Pa./7/2049/50.

NSBL commenced operation with effect from July 7, 1993 with one full-fledged
office at Durbar Marg, Kathmandu with 18 staff members. The staff strength has
since increased to 511. Under the Banks & Financial Institutions Act, 2063, Nepal
Rastra Bank granted fresh license to NSBL classifying it as an "A" class licensed
institution on April 26, 2006 under license No. NRB/I.Pra.Ka.7/062/63. The
Authorized, Issued and Paid-Up Capitals have been increased to Rs. 2 Arab, Rs. 8.93
Arab and Rs. 8.93 Arab, respectively.

Bank is one of the largest joint ventures of SBI, providing banking services through
its 88 offices including 76 Branches, 7 Extension Counters, 1 INTOUCH Outlet, 3
Regional Offices and a Corporate Office, network of 113 ATMs (including 2 Mobile
ATMs and 4 CRMs), more than 800 POS machines. Further, with proposed
expansion plan to reach over 100 offices by this fiscal year and with the roll out of
BLBs (Branchless Banking Units), we will have coverage to almost all the districts
of the country.

In terms of the Technical Services Agreement concluded between SBI and the Bank,
SBI provides management support to the bank through its 3 expatriate officers
including Managing Director who is also the CEO of the Bank. A core management
team viz. Central Management Committee (CENMAC) consisting of the Managing

19
 Director, Chief Operating Officer, Chief Financial Officer and Chief Credit Officer
oversees the overall banking operations in the Bank.

ADBL divested its stake in the Bank by selling its entire 5% promoter shares to SBI
on 14th June, 2009. Consequently, the Bank's corporate status has undergone change
from its previous status as a Joint-venture Bank to a Foreign Subsidiary Bank of
SBI. Presently fifty five percent of the total share capital of the Bank is held by the
SBI, fifteen percent is held by the EPF and thirty percent is held by the general
public.

3.2. Strategic Thrusts of the Organization

Vision: The Banker to Every Nepali.

Mission: My Nepal SBI Bank: My customer First, My Nepal SBI Bank: First in
Customer Satisfaction.

The overall strategic goal is to build an open and honest corporate culture and to
develop mutually beneficial relationship with all the stakeholders and create value
for them. Nepal SBI Bank Limited aim to reach strategic goals by:

 Caring for customers’ evolving needs and expectations by providing suitable and
tailor -made products and services.
 Creating a great environment to work in.
 Practicing exemplary governance and accountability.
 Working harmoniously and in mutual co-operation with the business partners.
 Ensuring reasonable returns on investment for the shareholders.
 Investing in local communities in which the bank operate, for the benefit of society
at large.

3.3.Corporate Structure and Design

The Board of Directors (BOD) is composed of seven members consisting four

members nominated by SBI, two members elected as representative of general
public from Annual General Meeting (AGM) and a member nominated from EPF.
Besides the BOD, there is provision of Central Management Committee (CENMAC)
which consists of Managing Director (MD), also nominated Board Member from

20
SBI, Chief Operating Officer (COO), Chief Financial Officer (CFO) and Chief
Credit Officer (CCO). The overall management of the bank is conducted by the
BOD and CENMAC. The corporate structure has been presented annex 1.

3.4 Branch Network of NSBL

The corporate office of NSBL is situated at Hattisar, Kathmandu. The bank has all
together 56 branches all over the capital and also all across the country and also in
India which makes the network of the bank its biggest strength. At present there are
17 branches in the valley and 33 branches out of the valley. Detail of the branches
with their location is shortlisted in annex3.

3.5 Board of Directors

The Board of Directors of NSBL is listed in the table below

Table no.3 Board of Directors

Position Name of position

holder

Chairman Mr.Sujit Kumar Varma

Director Mr. R.S. Ramesh

Director Mr. Arjun Kumar

Gautam

Director Mr. Keshav Raj

Acharya

Director Mr. Bala Krishna

Shrestha

Managing Mr. Anukool Bhatnagar

Director

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3.6 Management Team

NSBL is under the management of pure professional. The team consists of managers
acting as head of different departments. In pursuing their own task they supervise
and coordinate all their subordinates. They mould the efforts of the team on
achieving the overall goal of the organization. Board of directors formulates the
vision, mission statement and objectives for the organization and the managers on
their part are engaged in devising an action plan to achieve those objectives. NSBL
have a centralized type of management because all the decisions are taken by the top
management.

Table no: 4 Management team

Name Designation

Mr. Anukool Managing Director

Bhatnagar

Mr. Dev Raj Chief Credit Officer

Adhikari

Mr. Subhakanta Chief Operating Officer

Kanungo

Mr. Priya Chief Finance Officer

Ranjan

Mr. Chhapi Raj Chief Risk Officer

Pant

(Source:- nepalsbi.com)

3.7 Departments of the Organization

1 Customer Service Department(CSD)

2 Bills & Remittance Department(RMT)

3 Customers Relations Department(CRD)

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 4 Credit Control Department(CCD)

5 Credit Administration Department (CAD)

6 Trade Finance Center (TFC)

7 International Banking Department (IBD)

8 Administration Department

9 Legal Department

10 Treasury Department

11 Human Resource Department

12 Reports & Reconciliation Department

13 General Service Department

3.8 Products and Services of Nepal SBI Bank Limited

NSBL is growing up in terms of tenure of its operation. A lot of investment of both

time and capital has been put into bring innovative products and services that caters
the need of its customer. The product and services offered by the bank are as
follows:

1. Deposit products

NSBL has introduced various personalized products and services that harmonized
different banking requirements of its customers. Designed with arrays of features,
deposit products of NSBL are one of the best in the market. The deposit base
comprises of various types of depositors ranging from general public, business
houses to institutional depositors. NSBL tailor made and personalized deposit
products and services meet the needs in today’s fast paced and competitive business
world. The services are characterized as being easy, secure and attractive modern
banking facilitates that provides high returns to the surplus fund, makes personal
banking convenient and efficient thus diversifying the portfolio to best suit the
investment plan.

At present the following deposit services are provided by NSBL:

23
 Swarnim Bachat(Daily Balance Saving)
 Ujjwal Bhavisya Bachat Yojan (Recurring Deposit)
 Indreni Bachat
 Provident Fund Account For Permanent Staff Of Organization
 Simple Saving Account
 Swastha Bachat Khata
 Baristha Nagarik Bachat Khata
 Vishesh Khata
 Karmachari Bachat Khata
 Current Account
 Mahatma Gandhi Account
 Dhanabridhi Account
 Fixed Deposit

2. Loans and Advances

 Education Loan
 Auto Loan
 Home Loan
 Mortgage Loan
 Mortgage Plus loan
 Doctor Plus Loan
 Teacher Plus Loan
 SME loan for Small and Medium Enterprises
 Cash credit
 Project Term Loan
 Demand Loan
 Trust Receipt Loan
 Pre shipment Loan
 Other Commercial loan
 Loan against FD

24
3. Other Services

Prepaid Card

Online Banking System

 E-banking
 SMS banking

Utility Bill Payment Service

 NTC Bill Payment

 UTL Bill Payment
 LIC Insurance Premium
 Accounts Department
 Clearing
 Transfer
 Cash
 Reconciliation

25
 CHAPTER IV

ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

This chapter mainly focuses on the activities performed by the internee during the
internship period. For the whole internship period internee was placed in Customer
Service Department. However the opportunity to work under different department
was very fruitful for the internee as the internee got an overview of the entire major
task undertaken at respective department even in short span of time. The general
activities for an internee at the customer service department was opening account of
the customer, distributing ATMs, issuing cheque book, and providing various
information about the products to the customers.

4.1 Customer Service Department

Customer Service department is a primary level department that generally deals with
customers directly and regularly. This department is basically directed towards
providing the surface level assistance to the customers i.e., to provide general
information about banking system, product and services provided by the bank. The
department is responsible for providing the basic materials like deposit vouchers,
cheque book, bank statement, balance certificate, cards.

Customer Service department is the face of bank. Customer Service department is

the place where customer initially interacts with the bank. customer service expands
client focus to include everything that happens within and around the bank, from the
way staff greet clients, to the atmosphere in the waiting room, to the matter in which
clients complains are handled.

The very first thing that the people seek in the organization is the prompt service and
the person at the customer service desk properly handles them. The people at the
customer service desk must be ready to sort out every problem at any moment. The
customer service division can answer questions, resolve problems, and help you
establish new accounts and services, and providing information on products, forms,
and publications

The increasing competition in the banking sectors demands more service

proliferation, which would satisfy the demand of the customers. Banks and other

26
 financial institution are introducing more and more innovative services such as
ATM, debit card, internet banking, locker services and various other services for
their customers to serve them more efficiently and effectively. Customers seek in
organization the prompt service and the person at the customer service desk properly
handled them. The people at the customer service desk must be ready to sort out
every problem at any moment. A customer is the most important visitor on the
business premises.

Customer Service Department or CSD is oriented towards handling customer queries

and grievances. Remaining in this department Intern tried to grab the overall general
information about different departments and procedures of activities related to them.
Actually, it is the most appropriate department for intern because all the customers at
first come to CSD to get the information of anything they need to do with bank.
Staffs who stays in the CSD need to have the general information about all the
departments and their procedures. The major and the interesting task in CSD is
dealing with customers. Different faces with different quires, interest and perception
makes the counselling more interesting and challenging too. The important task the
intern learnt at this department can be described as below:

4.1.1 Account Opening process and requirements

Any individual capable to enter into a contract can open accounts with the bank.
Lunatics’ insolvents, drunkards cannot enter into the contracts. Naturally, they
cannot be the account holders. Illiterate persons, blind trustee can open a accounts
but special attention should be paid to customers. Likewise, bank open accounts in
the name of minors but they have to be operated by guardians till “minors turn into
majors”. There are various types of individual accounts such as: Personal NPR
Account, Personal USD account and can open a account in all convertibles
currencies directed by NRB (For Nepalese and Foreign Citizen) and Joint NPR
Account.

Basic requirement for opening the personal account

 Customers name, gender, marital status, date of birth, permanent and temporary
address (phone number), father’s name, grand father’s name or husband’s name, and

27
 all other relevant detail filled in the account opening form correctly by the
accountholder.
 Agree with the terms and conditions of the bank.
 Sign the specimen cards.
 Certified true copy of identification document i.e. citizenship or Passport and Birth
Certificate in case of minor account, and registration certificate as an Indian citizen
for Indian.
 Two photograph of account holder and if the account holder wants the debit card
then one extra photo for Debit Card.
 Utility payment bills required (ie, NEA bill, drinking water supply bill, Nepal
telecom bill, etc).
 Introducer required to the applicant.

In case of Joint Account

 The account holder should present in the business desk during the time of account
opening.
 Agree with the terms and conditions of the bank.
 Fill in the applications form correctly by the customer.
 The citizenship of the parties involved in the joint account must be presented.
 Two photographs of each party involve in joint account.
 The account holder should decide on the signature that is either one signature is
acceptable or both signatures are compulsory.

In case of Foreign National

 Certified true copy of Passport.

 Documents should be certified from concerned Embassy.
 Certified True copy or valid Visa.
 All documents of personal account for all the joint parties.

After ascertaining completion of basic requirement, the bank assigns an account

holder, accepts deposit slip (voucher) and issues a chequebook.

In case of Limited Companies

28
 Certified copy or exact of the Resolution of the Board of Directors and authorized
signature certified by chairperson or secretary.
 Copy of Memorandum of Association and Articles of Association.
 Copy of Certificate of Incorporation.
 Document disclosing the name, surname, and address of the members of Board of
Directors.
 Photographs of the members of Board of Directors.

In case of Proprietorship / Partneship accounts

 Registration certificate

 Tax registration certificate (PAN)

 Copy of identification of all signatories

 Document evidencing residential address of signatories, directors, beneficial owners.

 Passport size photos of signatories.

 Resolution from board of trustee/ authorized personnel

Process of opening new account

After fulfilling the requirement of the issued account opening form and customer
information form by the customers, it is received by the CSD. Then, thorough
checking and verification are done to see any discrepancies. Once the verification is
done with the original documents, a stamp stating “VERIFIED WITH ORIGINAL”
is affixed on the photocopy of all the supporting documents. The signature for the
account operation and image of the accountholder is scanned and kept along with the
customer’s detail in the FINACLE software. Finally all these details are taken to the
operating head for verification and approval.

4.1.2 Account closing process and requirements

It is another important task done under account operation. It is very rare that you
encounter a account closing request at the customer desk at NSBL. People close
their accounts because of many reasons but the major reason that I got to know was

29
 the customer is going somewhere out of the country and the increased number of
competitors in the area and sometimes due to their personal problems.

Procedures to close an account are given below

Step1. The customer is asked the reasons for closing the account and tries to
convince not to close the account by explaining the benefit of the account and the
charges taken for closing the account.

Step2. If the customers are willing to close the account must fill up the form
specifying the reason.

Step3. After submission of the form to CSD it is confirmed from the various
department that the customer is not enjoying and sort of facility from the bank at
present.

Step4. The client is then asked to return all his account related belongings like ATM
cards and the check book. These are received by the teller and are cancelled or
destroyed.

Step5. Then finally the account of the applicant is closed with certain charge

4.1.3 Preparing and distributing functions

Another activities performed in the customer service department is preparing and

distribution of various requested document to the clients. Various documents that a
client can get from this department on requested are:

 Balance Certificate
 Cheque Books
 ATM Cards
 Account Statement
 E-Banking user id
 SMS Banking

a. Balance Certificate Distribution:

Mainly the balance certificate is demanded by the corporation to know the status of
their account and present to the Board of Directors meeting. The bank provides the

30
 certificate to only the account holder after the request form has been filled up and
submitted to CSD. The bank provides the certificate to the corporation if the letter
about the request certificate presented in the letter head with the signatures of the
members and the stamp of the corporation. The statement can be issued to an
individual also by fulfilling the same process.

b. Cheque Book Distribution

Clients, especially the ones holding current account in the bank request for the
cheques book quite often. The client has to fill up the cheque request slip available
in the customer department. After the submission of the request slip, the cheque
book is then provided to the requester the next day. The account holder must present
to collect the cheques book and sign in the register and requisition slip.

c. ATM Distribution:

The ATM card of NSBL is linked with the Visa Debit Card. They can use this card
in various ATM counters all over the country and in India as well to withdraw cash
and even for other activities like balance inquiry, pin number change, etc. The
processes of distributing the ATM to the customer are as follows:

 For collecting the ATM card the account holder must be present in the business desk
with the account number
 Check whether the ATM card has received by the bank or not.
 The account holder must sign in two register that is card number register and ATM
delivery register. Then the signature is verified with the original signature provided
during the time of account opening.
 After the verification of ATM card is provided to the account holder and inform
about the activation of the card.

d. E-banking user id Distribution:

The account holder can use the internet facility to know about the balance,
statement, fund transfer, etc. The official website of NSBL is
www.nepalsbi.com.np.The account holder must fill the form of internet banking and
request for the password, codes, etc.

e. SMS Banking Distribution:

31
 The account holder can use the mobile facility to know about the balance, statement
etc. The account holder should go to their message box and write the code given by
the bank send it to four digits given by the bank itself. The account holder must fill
the form of sms banking and request for the codes.

4.1.3 Miscellaneous Functions:

 Cheque book binding

 Making entry on registers
 Filing the documents
 Complain handling
 Updating the records

4.2 SWOT Analysis

SWOT analysis is one of the major tools for analyzing organizational internal as
well as external environment. The internal environment provides strength and
weaknesses whereas the external environment provides opportunities and threats to
the organization. Thus, the organization uses its strength to grab opportunities and
minimize threats. Most of the organizations use this tool to formulate plan, policies,
and strategies for achieving goals.

The SWOT analysis of Customer Service Department of NSBL, Ghorahi can be

listed as follows:

Strengths

 Use of advanced technology

 Efficient management system

 Diversified product and service offered

 Highly experienced, efficient, hardworking, professional staffs

 Quality work culture leading to superior and prompt customer service

 Better image and established brand name in the market

32
 NSBL uses one of the latest banking software called ‘FINACLE’, which makes its
services more efficient and effective

 NSBL has banking network not only through the country but also in India by which
customers can easily access its services

Weaknesses

 Low interest rate on deposits

 Late distribution of ATM cards

 Less number of deposit services as compared to other banks

Opportunities

 Raising awareness of general public towards modern banking products i.e. ATMs,
internet banking etc.

 Opportunity to inter into the new and profitable segment of the market by expanding
its networks

 Opportunity to attract large number of customers by promoting its brand name and
goodwill in the market.

Threats

 Tough and unfair competition

 Political instability

 Changing rules and regulations of NRB

33
 CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1. CONCLUSION

NSBL is one of the leading banks in Nepalese financial industry. NSBL, as a pioneer
in introducing many innovative products and marketing concepts in the domestic
banking sector, represents a milestone in the banking history of Nepal as it started an
era of modern banking either customer satisfaction measured as a focal objective
while doing business. Today NSBL holds one of the strongest networks, network in
and outside Nepal compared to other financial institutions of Nepal. NSBL has focus
on customer satisfaction by providing highly acclaimed services. NSBL has good
cooperation within and outside organization. NSBL has succeeded to maintain good
culture and discipline in organization.

The internship at NSBL Bank helped intern to gain in-depth knowledge about real
working environment, interpersonal and communication skills, organizational
culture and behaviour, professional qualities and team building spirit as well as
working principles of commercial banks. Besides, observing and learning the
various activities in the different departments, intern performed the various task.
During that period, intern found that costumers are the key focus and greatest asset
of the bank. Thus, the bank always focused to maintain long term relationship with
customer and retain them by providing better services. Employees are directly linked
with these customers so employee must behave in decent and peaceful way.
Similarly, proper coordination and cooperation among all departments is needed for
growth of organization.

During the internship period intern got chance to get familiar with the activities
performed in Customer Service departments. The process of issuing balance
statement and balance certificate and process of issuing new card to the customers
whose cards had been expired were learnt. In this course intern got an opportunity to
assess the requirements in a cheque, deposit slip, account opening form, account
closing, the various information revealed by balance statement, the need of balance
certificate, the requirements of dispatching new cards to the expired card holders and

34
 much more. Overall, the internship program has been really very fruitful in
enhancing the practical knowledge of the intern.

5.2. LESSON LEARNT

Knowledge of both theoretical and practical aspects and exposure in the practical
field is must to be competitive in this world. Real work setting is a diverse situation
than the classroom leaning scenario, as we enter into real work setting there arise
novel problem, difficulties and challenges which make the person more dynamic and
enthusiastic. While dealing with the complexities we develop the interpersonal and
communication skills which further shape our personality.

Theoretical knowledge is not enough to know anything in a complete sense. For this
practical exposure is quite essential and program like internship grants such
opportunity. During the internship period, one gets acquainted with various lessons
and practical knowledge which could be basic for ones career development. In the
due period I got familiar with general banking activities, banking transactions,
clerical works and operations of office equipment, customers handling techniques,
various problems that may arise in bank, the importance of motivating factor, office
layout, maintaining relations with staffs etc. Beside these superficial lessons I got an
opportunity to learn various below mentioned lesson too:

 Learned the importance of the proper organization culture and its effect on the
professional working environment. The culture is comprises with communication
skills, team work, well-mannered behaviour, and the degree of social and
professional environment between the employees as well as with the customer.

 Learned how to deal with varieties of people and their queries and providing
appropriate information to the customers.

 Learned to communicate effectively with the people improving inter-personal skills.

 Learnt the importance of relation between clients and bank.

 Acquired knowledge about the different types of services provided by the Customer
Service Department (CUSTOMER SERVICE DEPARTMENT).

35
 Learned account opening procedure, statement printing, account closing, cheque
issuing, ATM Card and ATM Pin issuing procedures.

 Realized the work pressure at the time of performing tasks.

 Experienced the importance of time factor in bank for both customer and employee.

 Experience that for positive result the coordination between employees of different
level is important.

 The customers are the main drivers of any organization so they should be well served
with efficient and effective services. Customers’ attitude towards bank should
always be positively maintained.

 The degree of socialize environment of any organization determines the effectiveness

and efficiency of any organization.

 Misbehavior of any personnel adversely affects the organizational image whereas

mannerly and polite behavior as well professional behavior of employee positively
effects the customer reaction toward the organization.

 Motivated staffs are proved to be valuable assets of organization.

 Develop the interpersonal, managerial and entrepreneurial skills that are crucial in
every professionals and employees career development.

 Learned to deal with different people at different point of time.

 Learned to be calm under the adverse conditions and tactfully handle the complexities
and to handle the grievances.

 Learned the importance of displayed emotion on the work place.

5.3 Recommendation

 Many customers were not satisfied by the technical errors that occurred on daily
basis on ATM booths and web based services
 New way to motivate staffs as well as the customers. For example, reward
management, recreational activities, training etc. The staff needs more motivation
for bringing the accounts and loyal customers to the organization.

36
 Customers were seen unknown about the schemes; hence bank should conduct such
programs to let customers know about the new schemes and development programs.
 Staffs were seen bored because of untimely organized lunch time, which if
organized well or some cafeteria built within organization premises will add energy.
 Management department shall be made bit stronger.
 The bank needs to be more concerned about functioning of ATM as it may be out of
service time to time.
 Door to door marketing concept is not yet used by the branch so it should take some
steps towards it to increase the follow of customer.
 Investing huge amount in only one title is not secure so the amount of loan must be
allocated and distributed by analyzing possibility of risk.
 Bank's staffs should focus on customer's feedback which will be helpful to perform
well more in future.
 Delay in providing ATM card and cheque that created lots of dissatisfaction among
customers. So, the bank should try to avoid it and cheque printing should be done in
branch.
 To increase the productivity of the staff follow the job rotation, job enrichment
which also reduce the high turnover, boredom & absenteeism.
 More branch should be opened as possible, especially in the village & remote areas,
so that the more deposit can be collected by satisfying customers.
 The bank staff should provide the actual information and data to the interns for
report writing.

37
BIBLIOGRAPHY

Books and Annual Report

Manandar ,K.D.& Pokhrel ,S.B. (2012). Marketing financial services .Kathmandu

Buddha Publication

Nepal SBI Bank Ltd. (2017/ 2018). Annual Report . Kathmandu: NSBI

Thapa, K. (2010). Financial institutions and market . Kathmandu; Ashmita

Publication.

Websites

www.nepalsbi.com.np

www.nrb.org.np

38
 ANNEX:1.1 List of Commercial Banks in Nepal

S.No NAME Operation Head Office

Date
(A.D.)

1 Nepal Bank Ltd. 1937/11/15 Dharmapath,

Kathmandu

2 Rastriya Banijya Bank 1966/01/23 Singhadurbarplaza,

Ltd. Kathmandu

3 Nabil Bank Ltd. 1984/07/16 Kantipath, Kathmandu

4 Nepal Investment Bank 1986/02/27 Durbarmarg,

Nepal Ltd. Kathmandu

5 Standard Chartered Bank 1987/01/30 Nayabaneshwor,

Ltd. Kathmandu

6 Himalayan Bank Ltd. 1993/01/18 Thamel, Kathmandu

7 Nepal SBI Bank Ltd. 1993/07/07 Hattisar, Kathmandu

8 Nepal Bangladesh Bank 1994/06/05 Nayabaneshwor,

Ltd. Kathmandu

9 Everest Bank Ltd. 1994/10/18 Lazimpat, Kathmandu

10 Bank of Kathmandu Ltd. 1995/03/12 Kamaladi, Kathmandu

11 Nepal Credit and 1966/10/14 Siddharthanagar,

Commerce Bank Ltd. Rupandehi

12 Lumbini Bank Ltd. 1998/07/17 Narayangadh, Chitwan

13 Machhapuchhre Bank 2000/10/03 Prithivichowk,

Ltd. Pokhara, Kaski

14 Kumari Bank Ltd. 2001/04/03 Durbarmarg,

39
 Kathmandu

15 Laxmi Bank Ltd. 2002/04/03 Adarsanagar, Birjung,

Parsa

16 Siddhartha Bank Ltd. 2002/12/24 Kamaladi, Kathmandu

17 Agricultural 1968/01/02 Ramshahpath,

Development Bank Ltd Kathmandu

18 Global IME Bank Ltd. 2014/03/02 Birjung, Parsa

19 Citizens Bank 2007/06/21 Kamaladi, Kathmandu

International Ltd.

20 Prime Commercial Bank 2007/09/24 Newroad, Kathmandu

Ltd.

21 Bank of Asia Nepal Ltd. 2007/10/12 Tripureshwor,

Kathmandu

22 Sunrise Bank Ltd. 2007/10/1 Gairidhara,

Kathmandu

23 NMB Bank Ltd. 2008/06/05 Babarmahal,

Kathmandu

24 Janata Bank Nepal Ltd. 2010/04/05 Newbaneshor,

Kathmandu

25 Mega Bank Nepal Ltd. 2010/07/23 Kantipath, Kathmandu

26 Civil Bank Ltd. 2011/03/10 Kamaladi, Kathmandu

27 Century Commercial 2012/02/15 Putalisadak,

Bank Ltd. Kathmandu

28 NIC Asia Bank Ltd 2013.06.30 Kathmandu

40
(Source:- nrb.org.np as on mid April, 2017s

ANNEX:1.2 Nepal SBI Bank Limited Branches

Bhaisepati Maharajgunj

Bhaktapur New Baneshwor

Boudha New Road

Commercial Branch Patan , Jawalakhel

Dallu Sinamangal

Durbar Margh Main Branch Teku

Gaushala Thamel

Gongabu Embassy of India Ext. counter ,

Lazimpat

Gwarko BGSN Ext. Counter , Thamel

Kalanki Indian Visa Service Center,

Lazimpat

Corporate Office, Hattisar

Eastern Region Branches (10 branches, 1ext.counter,1 administrative office)

Biratnagar Lahan

Birtamod Myanglung

Damak Phidim

41
Dharan Pension Paying Office, Dharan

Illam Regional Office , Biratnagar

Itahari

Centeral Region (ex Kathmandu valley) Branches (6 branch , 1 ext . counter)

Birgung Rampur

Hetauda Ratnanagar

Janakpur CCG Ext.counter , Birgunj

Narayangarh

Western Region Branches(14 branches, 1 ext. counter)

Abu Khaireni Parasi

Besisahar Pokhara

Baglung Sandikharka

Bhairahawa Shishuwa

Butwal Sirjana Chowk

Damauli Waling

Gulmi Pension Paying Office , Pokhara

Palpa

Mid –Western region Branches (3 branches, 1 admistrative office)

Dang Surkhet

42
Nepalgunj Regional Office , Nepalgunj

Far – Western region branches(3 branches)

Dhangadi Tikapur

Mahendranagar

43