CUSTOMER SERVICE ACTIVITIES OF NEPAL SBI

BANK LIMITED SRIJANA CHOWK BRANCH

By

Sankalpa Regmi
Exam Roll No: 21101/18
TU Registration Number: 7-2-297-613-2018

An Internship Report

Submitted to
Janapriya Multiple Campus
The Faculty of Management
Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

Pokhara
September 2023
 STUDENT’S DECLARATION
I hereby declare that the internship report entitled, “Customer Service Activities of
Nepal SBI Bank Limited” submitted to the Faculty of Management, Tribhuvan
University, Kathmandu is an original piece of work under the supervision of Prof.
Devilal Sharma is submitted in partial fulfilment of the requirements for the award of
the degree of Bachelor of Business Administration (BBA). This internship report has
not been submitted to any other university or institutions for the award of any degree
or diploma.

September 2023

………………..
Name: Sankalpa Regmi
Exam No. 21101/18
TU Registration No.: 7-2-297-612-2018

ii
RECOMMENDATION FROM THE SUPERVISOR

iii
LETTER FROM THE ORGANIZATION

iv
 ACKNOWLEDGEMENT

This report is prepared as the partial fulfillment for the degree of Bachelor of Business
Administration (BBA) in accordance with the program prescribed by the Faculty of
Management of Tribhuvan University. This program provides us with an opportunity
to apply our theoretical knowledge in the practical field which we have learnt in the
colleges. Personally, I have gained an extraordinary experience of practical field and
report preparation through this report. Preparation of this report only through my
individual efforts would never have been possible. As such, many counter parts have
facilitated me with their valuable guidance, suggestions and supports. I would here by
like to bring those names into attention with heartily thanks and gratitude.
First, I would like to thank for a Tribhuvan University for giving chance to prepare
the Internship Reports for the partial fulfillment of BBA. I wish to express my cordial
thanks to my BBA Co-Ordinator Mekh Raj Poudel. Also, my thanks goes to Mr.
Vijay Ghimire, Branch Manager of Nepal SBI Bank ltd. Srijana Chowk Branch for
providing me an Opportunity to do my internship Report work in “Nepal SBI Bank
ltd.” I would like to thank Suresh Shrestha (CDS Head) and Ramesh Poudel of
Operation Department and all the team of the Nepal SBI Bank ltd for their
continuous helps and support for the preparation of this report.
Likewise, special thanks to friends and relatives for their support and cooperation. I
have tried to cover all the possible matters that I felt, important to sum up for the
“Customer Service Dept.” I am hopeful that this task will be helpful to the students of
business studies and to those who want to make further researchers under this topic.

v
 TABLE OF CONTENTS

Student’s Declaration ii

Recommendation Letter of JMC iii

Certification of the Organization iv

Acknowledgement iii

Table of Contents vi

List of Tables viii

List of Figures ix

Abbrevations/Acronyms x

CHAPTER I:INTRODUCTION 1-5

1.1Background 1

1.2Objectives of the Internship Report 1

1.3 Methodology 2

1.4 Limitation of the Study 5

CHAPTER II: INTRODUCTION TO THE BANKING SECTOR 6-13

2.1 Meaning of Bank 6

2.2 Evolution of Banking Industry 7

2.3 History of Bank in Nepal 8

2.4 Meaning of Commercial Bank 10

2.5 Functions of Commercial Bank 11

2.6 Commercial Bank in Nepal 13

CHAPTER III: INTRODUCTION OF NEPAL SBI BANK LIMITED 14-27

3.1 Background 14

3.2 Present Scenario of Nepal SBI Bank Ltd. 16

3.3 Product and Services of Nepal SBI Bank Limited 20

3.4 SWOT Analysis 25

vi
 3.5Future Prospects of NSBL 26

CHAPTER IV: ANALYSIS OF ACTIVITIES DONE AND PROBLEM

SOLVED 28-39

4.1 Customer Service Department 28

CHAPTER V:CONCLUSION AND LESSON LEARNT 40-44

5.1 Summary 40

5.2 Conclusion 40

5.3 Lesson Learnt 41

5.4 Recommendation 44

REFERENCES

APPENDIXES

vii
 LIST OF TABLES

Table Title Page

No
1.3.1 Placement Schedule 4
2.3.1 Classification of Financial Institution 9
2.3.2 List of Commercial Banks in Nepal 13
3.2.1 Board of Directors 19
3.2.3 Department of Organization 20

viii
 LIST OF FIGURES

Figure Title Page

No
3.1 Share Distribution of NSBL 15
3.2.1 (a) Corporate Governance Structure and Design 17
3.2.1 (b) Organization Structure of NSBL 18
3.3 (a) Deposit Mix (F/Y 2077-78) 22
3.3 (b) Deposit Mix (F/Y 2078-79) 23
3.3 (c) NSBL Products and Facilities 25
4.1 (a) Major activities of CSD 30
4.1 (b) Account opening Process 32

ix
 ABBREVATIONS/ACRONYMS

ABBS Any Branch Banking Service

A. D Amino Dominee

AGM Annual General Meeting

AOA Article of Association

ATM Automated Teller Machine

BOD Board of Director

BOP Balance of Payment

BOT Build Operate and Transfer

CAD Credit Administration Department

CCD Credit Control Department

CCO Chief Credit Officer

CEO Chief Executive Officer

CENMAC Central Management Committee

CFO Chief Financial Officer

CGM Chief General Manager

CIB Credit Information Bureau

COO Chief Operating Officer

CRD Customer Relation Department

CRR Cash Reserve Ratio

CSD Customer Service Department

EPF Employee Provident Fund

IBD International Banking Department

IRCTC Indian Railway Catering and Tourism Corporations

IT Information Department
x
KYC Know Your Customer

MBA Master of Business Administration

MD Managing Director

MOA Memorandum of Association

MOU Memorandum of Understanding

NABIL Nepal Arab Bank Limited

NBL Nepal Bank Limited

NEA Nepal Electricity Authority

NIDC Nepal Industrial Development Bank

NSBL Nepal SBI Bank Limited

RMT Remittance

OCR Office of Company Registrar

OD Over Draft

RBB Rastriya Banijya Bank

RTGS Real Time Gross Settlement

SBI State Bank of India

SEBON Security Exchange Board of Nepal

SLR Statutory Liquidity Ratio

TU Tribhuvan University

xi
 CHAPTER I

INTRODUCTION
1.1 Background
Internship is the part of BBA curriculum as prescribed by the Tribhuvan University
College. 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 Four years.
Bachelor’s degree program and it is run on the semester system that is
8thsemester.The internship during the last semester is a must to complete BBA
degree. Internship is an 8-week program designed to provide students and 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 experience which can help the students achieved their
goals. (Banjara, 2012)
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
an emerged as a major player in the service industry. Currently Forty-eight plus sector
Business school offers BBA program in affiliation with Tribhuvan University in
Nepal. (edusanjal, n.d)
This project studies on the banking activities of Nepal SBI Bank Limited. It focuses
on the services and facilities being served by NSBL to its customers for satisfying
their needs. The financial services provided by NSBL for satisfying its customers are
deposits, loans and advances, e-banking, mobile-banking, online payments, ATMs,
365 days service and soon.

1.2 Objectives of the Internship Report

For any kind of work or study the objectives must be determined that helps to show
the way to achieved desired goals. The major objective of internship program is to
 2

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 the period.
The specific objectives of the internship have been proposed listed below:
i. To learn the real-life working environment of the bank.
ii. To identify the various services and facilities rendered by bank.
iii. To develop the communication skills and interpersonal skills by
communicating with the customers in the CSD.
iv. To learn about the customers attitude towards the service provided by the
bank.

1.3 Methodology
This report has been prepared based on two months internship experience Customer
Service Department of Nepal SBI Bank. Interaction with the staffs and the operational
knowledge gained in 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
major sources of secondary data. They are highlighted as below:

Primary Source
 Direct personal interview with the related staffs.
 Clients are also the source of information, and they provide the information
based on their perception towards the products and services and the time they
spared at NSBL.
 Asked many questions to the staffs of related department and acquired lots of
information from them.

Secondary Source
 The internee visited the official website of NSBL and other various websites
of commercial banks.
 The articles and magazines are the other secondary source through which
internee acquired the information.
 The brochures and annual report of NSBL.
 3

1.3.1 Organizational Selection

In order to select organization, the internee first personally visited and dropped
college recommendation letter and internee curriculum vitae at Nepal SBI Branch
office, Srijana Chowk. The bank accepted internee request and internee was provided
opportunity to do internship at Nepal SBI Bank Limited, Branch office at Srijana
Chowk. The internee has selected NSBL, for learning various aspects of working
environment with the aim to build confidence by developing interpersonal and
managerial skill in real field and its became a source of inspiration in internee
professional career.
1.3.2 Placement
During the eight weeks of internship, internee was mostly placed in Customer Service
Department (CSD). On 3rd April 2023 intern was placed in Nepal SBI Bank Srijana
Chowk Branch to start his internship. There the intern met the then Branch Manager
and as per his requirement intern was placed in Customer Service Department (CSD)
under the supervision of Other Operation employees. Intern was required to handle all
the activities of the department under the guidance and supervision of Operation In
charge. The intern was kept in CSD for whole duration of the internship. In this
department, intern got an opportunity to deal with the customer in real environment.
Intern learnt to open their account, check their balance, issuing cheques and their
banking transactions statement and other activities related to its department such as
Account Closing, Filling various Forms. In addition, the other staffs were equally
cooperative and helped to learn the activities of the department. The encouraging and
cohesive environment made the process of learning easier.
1.3.3 Duration of Internship
The duration of internship period has been defined for 8 weeks by Tribhuvan
University, so as per the specified period, intern worked in SBI Srijana Chowk branch
from 3rd April 2023 to 2nd June 2023 with the office time 10:00 am to 6:00 pm from
Sunday to Thursday and 10:00 am to 3 pm on Friday as per the schedule of the
organization. Internee thought those eight weeks were fruitful and it will help in
upcoming days. It was the internship program that helps to internee to be familiar
with the organization culture, work environment and working procedure of the SBI.
The placement of internship is shown in the table below:
 4

Table No.1.3.1.

Placement Schedule

Name Of Weeks
Department 1ST 2ND 3RD 4TH 5TH 6TH 7TH 8TH

Customer
Service
Department

1.3.4 List of Activities Performed

CSD oriented towards customer and basically handles all the queries of the customers.
It deals with new account opening, account closing, Resolve Complaints effectively
and promote Bank’s products and services, and so on. Some of the activity’s internee
performed is:
 Dealing with regular and new customers of the bank.
 Advise customers about NSBL Bank’s products and services and respond
their queries.
 Providing different kinds of forms to customer such as Account opening
form, Account closing form, Debit card application form, Internet banking
form, SMS banking form, etc.
 Collecting necessary documents and checking forms of the customers
required for account opening procedures.
 Filing application forms and writing different application on behalf of
customers on the request of customers.
Keeping record of the account opened, account closed, transfer of the
account, customer taking additional such as Internet banking, SMS banking,
etc.

 Providing ATM cards to the cardholders.

 Preparation of cheque books, recording the information and providing it to

the respective customer after verifying the signature.
 Making entry of void cheques, loss cheques, issuance of cheques, etc.
 5

 Photocopies of citizenship cards, passports, license, and other documents of

the customer required for recording of customer service department.
 Handling the telephone calls.
 KYC follow up.

 Inform Customers about Bank Offerings: Loan, Saving, Deposits, Digital

Banking.

1.4 Limitation of the Study

Although the best effort issued to make the study effective, trustworthy and error free,
but the study is bounded by some limitations. They are listed below:
 Due to the restriction of time, the study could not be extended for detailed
study
 Due to privacy policy maintained in an organization, unavailability of
information created a problem.
 Internee was not allowed to use the system and to perform the cash
transaction.
 The study is done only in a single banks overall industry and economy could
not be studied.
 Most of the information are gathered through personal experience and
observation, so overall information may not be presented.
 Busy schedule of organizations staffs made it difficult to share overall
knowledge and experience they have.
 CHAPTER II

INTRODUCTION TO THE BANKING SECTOR

2.1 Meaning of Bank
In general, Bank is a financial institution which deals with the monetary transaction.
The major function of the bank is to accept deposits and providing loans. The bank
attracts deposits from various investors by providing certain rate of interest, and
investing the accumulated funds as loans to others who need 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 wide strange of financial functions of any business firm in
the economy.
In the broader sense, a bank is a financial intermediary that performs one or more of
the following functions. Safeguards and transfer fund lend or facilitates lending,
guarantees creditworthiness and exchange money. Such Institutions as commercial
banks, central banks, saving banks, trust companies, and life insurance and investment
bankers provide these services. (Thapa. K,2022)
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. Bank is financial service institution, therefore in
between this intermediation, the bank gets some earning. McGee, R., & Kroesschell,
C. (2013)
As pillars economic system, there are entities as a Central Bank, Commercial Banks,
Development Banks, and other Financial Institutions.
2.1.1 Definition of Bank
The definition of a bank varies from person to person and country to country. Some
of the definitions of the Bank are given below.
 7

Bank is a financial institution, which provides financial services that may be in the
form of accepting deposits, advancing loan, providing necessary technical advice,
dealing over foreign currencies, remitting funds, etc.
“Any institution offering deposits subject to withdraw on demand and making loans
of commercial or business nature is a bank.
“Bank is an organization established for the purpose of exchange money deposit
lending money and participation in transactions.

2.2 Evolution of Banking Industry

During the early period, private individuals mostly did the banking business. As
public enterprise, banking made its first appearance in Italy in1157 when the “Bank
of Venice” was established. History shows the existence of a Monte’in Florencein
1336. The meaning of Monte is given in Italian Dictionary as a standing bank.
As early, the banking business was carried out by the shopkeeper of Barcelona.
Meanwhile the local government restricted shopkeeper to operate this business until
they had given sufficient security. During 1401 a public bank was established in
Barcelona. It used to exchange money, receive deposits and discount bills of
exchange. When the word bank is used it is meant for commercial bank. Actually,
word bank was originated from Germany though some people think it to be of French
and Italic origin. Before 1960 there was no such word as “banking”. However, in the
temple of "Babylon" the practices of safeguarding and saving flourished as early as
2000 B.S. Chanakya in his Arthashastra written in about 300 B.C., mentioning about
the existence of the powerful guilds of merchant’s bankers received deposits,
advance, loans, and hundi’s (letter of transfer).
Banking, subsequently, the establishment of “The bank of England” in 1694 AD as
the first central bank contributed a great deal to the history of the banking. Many
countries quickly followed England and established a central bank of their own. But
as the central bank is end owed with the special rights and authorized, it lacked a
direct interaction with the mass. Consequently, soon after, every country felt a
pressing need of the commercial bank. (Saunders and million, 2007)
History a part, it was the “Merchant banks” that first evolved the system by trading in
commodities than money. They used to do their trading activities by remitting the
money from one place to another place. For this they used “Hundies”. In India such
merchant bankers were known as “seths”. The next stage in the growth of banking
 8

was gold smith. His business was to take special precautions against theft of gold and
jewelry. He started valuable she issued a receipt, which in turn became like a cheque
as a mode of exchange.

2.3 History of Bank in Nepal

2.3.1 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 of coin age began
from around 5th century A.D. Around the 12th century, silver coinage was in practice
which made the scope of trade wider. At the end of 14 th century, the term “Tanka
Dhari” meaning “Money Dealer” was used.
In 1877 AD, Prime Minister Ranoddip Singh introduced financial and economic
reforms. “Tejarath Adda”was established at that time to provide credit facilities to the
general public. Credit facility was given by “Tejarath Adda” based on 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 Tejarath Adda outside valley.Tejaratha Adda extended credit facilities to
more and more general public and did not accept deposit from public. Due to this
reason, Tejaratha Adda finally faced a crisis. People started borrowing from money
lenders who charged a high interest rate and other dues. (Thapa. K, 2022)
Although “Kaushi Tosh Khana” was established during the regime of Prithivi
NarayanShah, Tejaratha Adda 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
centralbankuntil26thApril,1956, on which date, Nepal Rastra Bank (NRB) was
established. NBL was a semi government bank. Rastriya Banijya Bank (RBB) was
established on 23rd January 1966. Nepal Industrial Development Bank (NIDC) was
established as development bank in 1959 and Agricultural Development Bank (ADB)
was established in 1968. Since in 1984 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.
 9

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.

2.3.2 Present Scenario 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.
Modern banking in Nepal started from the establishment is Nepal bank limited. Under
the supervision and regulation of Nepal Rastra Bank, various banks and financial
institutions have come into existence. Nepal Rastra Bank's liberation of the Nepalese
banking industry leads to the establishment of joints venture banks in Nepal. The
status of the various financial institutions in Nepal is:
21 Commercial Banks (class A)
17 Development Banks (class B)
17 Financial companies (class C)
64 Micro Development Banks (class D)
1 infrastructure development bank
(Source: www.nrb.org.np)
Classification of financial institutions
Table 2.3.1: Classification of financial institutions
CLASS NUMBER
Commercial Bank (A Class) 20
Development Bank (B Class) 17
Finance Company (C Class) 17
Micro-Finance (D Class) 57

Total 111
(Sources: NRB Monthly Statistics)
The pace of financial liberalization started when the government allowed the entry of
commercial banks in joint venture with the 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.
 10

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 bank,
Nepal Indosuez Bank Ltd. (Present: Nepal Investment Bank) with the Indosuez Bank
of France and Nepal Grindlays Bank Ltd. (Present: Standard Chartered Bank Nepal
Ltd.) with Grindlays Bank of London were established in1986 and1987 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 1933 A.D. Bank of Kathmandu joint venture with SIAM Commercial
Bank Public Co., Thailand was established in 1995 A.D. Nepal Bank of Ceylon
(Present: Credit and Commerce Bank) joint ventured with Ceylon Bank of Sri-Lanka
was established in 1966 A.D. Everest Bank Ltd. joint venture with Punjab National
Bank in 1997 A.D.

2.4 Meaning of Commercial Bank

Commercial bank is the term used for a normal bank to distinguish it from an
investment bank. This is what people normally call a “Bank”. The term “commercial”
was used to distinguish it from an investment bank. The commercial bank refers to
bank which focus mainly on companies. (Subedi.P, 2013)
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, saving 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 the retail bank. It raises funds by collecting deposits from
business and consumers via checkable deposits, saving deposits, and the term
deposits. It makes loans to business 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 of wider horizons
and of new enterprise.
 11

In Nepalese context, Nepal Commercial Bank Act 2031 (1974), section 2(a) defines
“A commercial bank is one which exchange money, deposit money, accepts deposits,
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 that banks established under the Commercial Bank Act 2031, Company
Act 2053 and Central Bank Act 2058 are termed as Commercial Bank.

2.5 Functions of Commercial Bank

The functions of commercial banks are broadly classified into three types:

2.5.1 Primary Functions

Collection of deposits under various accounts and issue of loan in different sector are
the primary function of Commercial Bank. The primary functions are based on
following categories:

 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 the time account,
saving account and current account to provide banking service to customers. The
amount deposited in bank for fixed period is known as fixed account. 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 with draw 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.

 Providing Loans
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 needy borrower for short term, medium term,
 12

and long term by charging different rate of interest. Commercial bank issue credit
under the heading of cash, credit, overdraft, loan and discounting of bills of exchange,
etc.

2.5.2 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:
 Collections of Credit Instruments
Commercial banks accept credit instruments such as cheque, bills of exchange and
bank drafts of customers and make payments against them.

 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.

 Purchase and Sale of Securities

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

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

2.5.3 Contingent Functions

The contingent functions of commercial bank are also known as general utility
functions. It performs the following types of activities:
 Safety of valuable goods as gold, diamonds, and documents.
 Issue of credit instruments such as traveler’s 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.
 13

2.6 Commercial Bank in Nepal

Table No 2.3.2.
List of Commercial Banks in Nepal

Name of Commercial Bank Year Head Office

1 Nepal bank Ltd. 1957 KATHMANDU
2 Rastriya Banijya Bank 1966 KATHMANDU
3 Agriculture Development Bank Ltd. 2024 KATHMANDU
4 Nabil Bank limited 1984 KATHMANDU
5 Nepal Investment Mega Bank 1986 KATHMANDU
6 Standard Chartered Bank Nepal Limited 1987 KATHMANDU
7 Himalayan Bank Limited 1993 KATHMANDU
8 Nepal SBI Bank Limited 1993 KATHMANDU
9 Everest Bank Limited 1994 KATHMANDU
10 Kumari Bank Limited 2001 KATHMANDU
11 Laxmi Sunrise Bank Limited 2002 KATHMANDU
12 Siddhartha Bank Limited 2002 KATHMANDU
13 Global IME Bank Limited 2013 BIRJUNG
14 Citizen Bank International Limited 2007 KATHMANDU
15 Prime Commercial Bank Limited 2007 KATHMANDU
16 NMB Bank Limited 2009 KATHMANDU
17 NIC ASIA Bank Limited 2013 KATHMANDU
18 Machhapuchchre Bank Limited 2000 POKHARA
19 Sanima Bank Limited 2011 KATHMANDU
20 Prabhu Bank Limited 2009 KATHMANDU
 14

Source: www.nrb.org.com.np
 CHAPTER III

INTRODUCTION OF NEPAL SBI BANK LIMITED

3.1 Background
Nepal SBI Bank Ltd. (NSBL) first 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 theregistration.No.17-049/50 with an Authorized Capital of
Rs.12 Crore and was licensed by Nepal Rastra Bank on July6,1993 under the license
No. NRB/1. Pa./7/2049/50.
NSBL is a subsidiary of State Bank of India (SBI) having fifty-five percent (55%) of
ownership. The local partner viz. Employee Provident Fund holds fifteen percent
(15%) equity and General Public thirty percent (30%). In terms of the Technical
Services Agreement concluded between SBI and the NSBL. SBI provides
management support to the bank through its 3expatriate 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 Director, Chief
Operating Officer (COO), Chief Financial Officer (CFO) and Chief Credit Officer
oversees the overall banking operations in the bank.
NSBL was established in July1993 and has emerged as one of the leading banks of
Nepal, with almost 910 skilled and dedicated Nepalese employees working in total of
129 outlet that include 91 full-fledge branches, 21 extension counters, 7 provinces
offices and Corporate Office,9 Branchless banking and corporate office with presence
in 51 districts in Nepal. The Bank is providing value added service served to its
customers through its wide network of 125 ATM‟s (including 1 mobile ATMs and
4CRMS), more than 1400 POS machines and 2800 + QR merchants. Internet
banking, Mobile wallet, SMS banking, IRCTC (Indian Railway Catering and Tourism
Corporations) Ticket Online Booking facility, etc. NSBL is one of the fastest growing
commercial bank of Nepal with more than 1.10 million satisfied deposit customers
and over 0.80 million ATM/Debit card holders. NSBL commenced operation effect
 15

from July 7, 1993, with one full-fledged office at Durbar Marg, Ktm with 18 staff
members. The staff strength has since increased to500. Under the Banks and
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 the license
No. NRB/I.Pra.Ka.7/062/63. The Authorized capital is Rs. 300 crore and Paid-up
Capital is Rs. 235 Crores. The bank enjoys leading position in the country in terms of
penetration of technology products, viz. Mobile Banking, Internet Banking and Card
Services.
The bank is moving ahead Nepalese in the banking industry with significant growth in
Net profit with very nominal NPA. As of 31st Ashad 2078 , the bank has deposits of
Rs .106.21 billion and advance (net) of Rs.101.57 billion, besides investment
portfolio of Rs. 21.20 billion. SBI is first ever Bank in Nepal rated “AA” by ICRA
Nepal and has been the pioneer in introducing value added services to customers of
all segments both in the world class digital banking environment as well as in
traditional way.
NSBL has spent almost Rs.70.00 lakh towards the Bank support in fight against the
COVID-19 pandemic which includes addressing health challenges of the society as
well as maintaining good health of employees. NSBL bank provide basic
infrastructure/ medical equipment /support to various hospital organization working
for society to deliver quality healthcare and other services.

Figure No .3.1 Share distribution of NSBL

Share distribution

30%
State Bank of India

Employee Provident

55% General Public

15%
 16

Source: NSBL Annual Report

Table 3.1 Indicate that there was 55% ownership of state bank of India with highest
ownership. 30% ownership of employee provident fund and 15% in General public.

3.1.1 Vision
To be state of the art, customer centric, values driven and professionally managed
bank, committed to high standards of good corporate governance practices, perpetual
enhancement of the wealth of all stakeholders and the society.

3.1.2 Mission

To provide one stop solution to all the banking needs for the customer through a
highly motivated professional and efficient human resource pool. Promoting
Sustainable business growth by providing high quality service, customer care and
ensuring efficient use of Information Technology in a cost-efficient manner. Meeting
The expectation of all stakeholders through transparent, true and fair disclosures and
responsive management practices or principles. Strive to fulfill corporate social
responsibility in Nepal with emphasis to growth in business.

3.1.3 Objective

The overall strategic goal is to build an open and honest corporate culture and to
develop mutually beneficial relationship with all stakeholders and create value for
them. Nepal SBI bank ltd. aim to reach strategic goals by:
 To provide excellent service to the customer
 To provide non-funded and foreign currency transaction services.
 To provide various schemes and incentives to small saver in various to
mobilize domestic saving.
 To provide banking service and facilities to attract foreign direct investment in
the country.

3.2 Present Scenario of Nepal SBI Bank Ltd.

3.2.1 Corporate Structure and Design
 17

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

members nominated by SBI, two members selected 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 which consists of
Managing Director (MD), also nominated Board Member from SBI, Chief Financial
Officer (CFO), Chief Operating Officer (COO), and Chief Credit Officer (COO). The
overall management of the bank is conducted by the BOD and CENMAC. The
Corporate governance structures of bank are shown in fig. below:

Figure No. 3.2.1 (a) Corporate Governance Structure and Design.

Source: NSBL 29th Annual Report

 18

Similarly, the organizational structures are shown in figure:

FigureNo.3.2.1 (b) Organizational Structure of NSBL

Source:www.nsbl.com
 19

3.2.2 Board of Directors

The board of directors of NSBL are listed below:
Table No.3.2.1 Board of Directors
S.No Name Position
1. Ms. Jayati Bansal Chairman
2. Mr. Pinaki Nath Banarjee Director

3. Mr. Bharat Raj Wasti Director

4. Ms. Apsara Upreti Director

5. Dr. Gopal Prasad Bhatta Independent Director

6 Mr. Dipak Kumar De Managing Director and Chief
Executive Officer

Source: NSBL 29th Annual Report

3.2.4 Management Team

NSBL is under the management of pure professional. The team consists of managers
acting as head of different department. In pursuing their own task they supervise and
coordinate all their subordinates. They would the efforts of the team in achieving the
overall goals 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.
 20

3.2.5 Department of Organization

TableNo.3.2.3Department of Organization

S.No. Name of Department

1. Customer Service Department. (CSD)

2. Bills and Remittance Department (RMT).
3. Customers Relation Department (CRD)
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 and Reconciliation Department
13 General Service Department

Source: NSBL 29th Annual report

3.3 Product 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:
Deposits Products NSBL has introduced various personalized products and services
that harmonized different banking requirements of its customers. Designed with array
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. They are highlighted below:
 21

 NSBL Bal Bachat Khata

 NSBL Nari Bachat Khata
 NSBL Combo Saving Scheme
 Saral Bachat Khata
 Indreni Bachat Khata
 Vishesh Bachat
 Karnadhaar Bachat Khata
 Varistha Nagarik Bachat
 Karmachari Bachat Khata
 Savings Scheme for Nepal Army
 Savings scheme for Nepal police and Armed police force
 Students saving Account
 Normal saving Account
 NSBL Bideshi Nichhep khata
 Foreign deposit Account
 Ujjawal Bhavisya Bachat yojana .
 Dhanvridhi Bachat yojana
 Saving institution
 Rakshak Bachat Khata
 Shareholder‟s Account
 Premium saving scheme
 Swarnim Bachat Khata
 India Pensioner Account
 Saving –Gorkha
 Diplomats /Embassy
 Saving-NRP
FigureNo.3.3 (a) Deposits mix (F/Y2077-78)

Deposit Mix

0.66

20

saving
call
3.56
0.52 current
 22

Source: Annual report of NSBL F/Y (2077-78)

Figure 3.3(a) shows there will be huge amount of deposit in saving account that is
75%
.20% of fixed deposit and 3.56% in current deposit and 0.66% in call deposit. The
lowest amount in recurring deposit with 0.52%.

FigureNo.3.3 (b) Deposit Mix (F/Y2079-80)

Deposit mix

0.65

29.17
saving
call
current
fixed
60.25
Recurring
8.65

1.26
 23

Source: NSBL Annual Report (2078-2079)

Figure 3.3(b) shows there will be huge amount of deposit in saving account that is
60.25% .29% of fixed deposit and 8.65% in current deposit and also1.26% in current.
the lowest amount in call deposit with0.65%.
Apart from saving schemes, the bank offers Business Current Account and Personal
Current Account. Term deposits facilities like recurring Deposits and Fixed Deposits
offer competitive interest rate. Provident Fund account facility for permanent staff of
organization is also available wherein the interest rate is higher compared to savings
account. Call deposit account facility is available with attractive interest rate and
unlimited withdrawal facility.

Loans and Advances Loan Department

1. Education Loan
2. Auto Loan
3. Home Loan
4. Mortgage Loan
5. Mortgage Plus Loan
6. Doctor Plus Loan
7. Teacher Plus Loan
8. SME Loan for small and medium Enterprises
9. Cash credit
10. Project Term Loan
11. Demand Loan
12. Trust Receipt Loan
13. Pre-shipment Loan
14. Other commercial Loan
15. Loan against FD
16. BHU PUU Loan
17. Gold Loan
Other services
 Prepaid card
1. Online Banking System
 24

2. E-banking
3. SMS banking
 Utility Bill Payment Services
1. NTC bill payment
2. UTL bill payment
3. LIC Insurance Premium
 Account Department
1. Clearing
2. Transfer
3. Cash
4. Reconciliations

 Safe Deposit Lockers

 Extra Hours Banking Service

Figure No .3.3 (c) NSBL Product & facilities.

365Days
Banking/

Safe
Deposit SWIFT
Locker Transfers
Facility

NSBL SMS Loansand

And online Agency
banking function
system

NSBL's
Service and
Facilities

Bank
Deposits Guarantee,
Withdraws L/C, Bills
purchase

Cash
Remittance ATM/Debit Managem
Cards/Bharat ent
yatra/Credit
 25

Source:www.nsbl.org.com.np

3.4 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
weakness whereas the external environment provides opportunity and threats to the
organization. Most of the organization uses this tool to formulate plan, policies, and
strategies for achieving goals.
The SWOT analysis of CSD dept. Of NSBL, Srijana Chowk branch are:

Strength
 Use of Advance technology recently launch.
 Efficient Management system
 Diversified product and service offered.
 Highly experienced, efficient hardworking, Professional staffs
 Quality work culture leading to superior and prompts customer service.
 Better image and established brand name in the market
 NSBL uses one of the latest banking software called „FINACLE‟ , which
makes its service more efficient and effective.
 NSBL has banking network not only through the country but also in India by
which customer can easily access its services.
Weakness
 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 enter new and profitable segment of the market by expanding
its networks.
 26

 Opportunity to attract large number of customers by promoting its brand

name and goodwill in the market.
 Increase in practice of saving.
 Increase in financial literacy.
Threats
 Tough hand unfair competition
 Political instability
 Changing rules and regulations of NRB.
 Chances of losing customer because of the slow processing and long queue
banking system.
 Always having problem on ATM service could make bank suffer on long run
Restriction on the with drawl amount to the foreign nationalist could be the
opportunity for another bank to deal with foreign nationalist.

3.5 Future Prospects of NSBL

NSBL is going to get fully technology based. Most valuable reasons are the huge task
conducted by business firms. Banks are giving consumer service and getting more
consumers oriented such as ATM service, Internet Banking, SME Loan, Priority
Banking and so on. Banks are now competitive because of combination of banks and
commerce. So, they have an idea to provide quick service such as check funding,
quick withdrawal, fund transfer, LC opening etc. For various purposes data-mining
techniques are used in the financial industry. Credit scoring is the most mentionable
example of the use. To produce a score to summarize a credit risk NSBL may use
statistical techniques and historical data as a credit scoring process. Credit scoring is a
common form of speeding up credit decision to attract customers, and institutions use
another efficient technique to identify their potential customers that is data mining.
27
 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 the internee at the customer service department was opening account,
closing account, ATM distributing, cheque distributing, cash/cheque voucher and
others related form to the customer as well filing and Photocopying. Further most
cheque clearing entry of normal and express cheque has also been done by the
internee.

4.1 Customer Service Department

Customer service department is an initial part of any organization that firstly deals
with the customers directly and regularly. CSD is the main part of the bank where the
customers first go and inquiry their question or problems. Also known as the front
desk is the place where the customer interacts with the bank. For any organization it is
the place which makes an early impression to the client. The department is
responsible for providing the information about the query that is made by the various
customers.
It is the place where customers make the first contact with the bank to get the service.
The image and reputation of the bank depend upon the effective functioning of this
department. It provides the services like account opening and closing, providing
cheques and account statements, customer counseling, and providing different
information regarding the changes in banks, Debit Card application and distribution,
providing mobile banking facility and so on. The department is responsible for
providing the basic material like deposit vouchers, cheque book, cards, bank
statement, balance certificate.
 29

In this department the internee was supposed to help the in-charge. The main task of
internee was to help the client by informing about the products, which products give
what type of facility, what papers they must submit, how to fill the application.
form and know their feedback. During the internship period, the task/activities
assigned to the internee in the Customer Service Department are:
1. Account Opening
2. ID creation
3. Upload signature
4. Issuance of requisition slip
5. Handling customers queries
6. Complain handling.
7. Phone communication handling
8. Signature change
9. Signature verification
10. Check already created account
11. Dormant account activation
12. ATM mapping
13. Issue of open status letter
14. Receiving the visitors
15. Updating the records
16. Dealing with the customers problems
17. Instructing to fill up form
18. Filling the document
19. Account closing
20. Stop payment of cheque
21. Cheque Book Issuance
22. Issuance of Account Statement
23. Issuance of Debit Card
24. Issuance of Balance Certificate
25. Maintained Different Registers
26. Photocopying and filling
27. Attending incoming calls
 30

FigureNo.4.1 (a) Major activities of CSD

Account
Account Opening
Product
Major Operation Account Councelling
Activities Customer
Closing
Councelling
Service
ATM Councelling
Distribution
Distributing Cheque
Activities Distribution

Statement
Distribution

Source:www.nsbl.org.com.np

1. Account opening
Account opening is the initial requirement for the customer who wants to perform the
transaction with the NSBL. The customers are provided with account opening form
and are requested to fill up the form with all needed documents. After the form is
filled by customer, CSD staff verifies the form. If the customer who wants to open
account in NSBL is foreigners then the internee should send the document to the
 31

authorized person for the verification, after verification or getting approval CSD staff
can open the account on the name of respective customer. Then the customer is
provided with an account number and requested to deposit at least minimum amount
according to their account type.
Role of internee:

 Providing form to customer.

 Helping them to fill the form.

 Collect all the document needed to open the account.
 Receiving the signature in the form.

During account opening, customer also asked for the ATM card services, internet
banking services, SMS banking services as well as cheque then they are provided
form to fill and get these banking services. The different types of account found in
NSBL are as follow:
1. Savings
2. Fixed deposit
3. Current
 32

Table.No.4.1 (b)Account Opening Process

• Filling Account opening

1.

• Check And verify

2

• Follow system and Procedure to Determine Account

3

• Printing Account Opening Check list and

4

• Request to Deposits required

5

• Scanned and upload signature

6

• Verify& approve
7

4.1.1 Basics requirement for opening the personal account

Customer’s name, gender, marital status, date of birth, permanent and temporary
address, phone number, three generation name of a/c holder and all Other relevant
detail filled in the account opening form correctly by the account holders.
 33

 Agree with the terms and condition 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 holders and if he\she wants ATM card 3 photo
should be presented.
 Utility payment bill or copy of it (i.e., NEA bill, Nepal Telecom. bill,
Drinking water supply bill)
 In case of rent holder’s utility bill of their owner should be presented.
 One NSBL account holders should be required for Introducer.
 Introducers should be Nepalese citizen. Indian citizens with NSBL account
won’t be valid.
 Fill the cash voucher having minimum balance for account opening and extra
charges for ATM, Mobile service, etc.
Joint Account:
Both the parties should be present with their citizenship and utility bill copy for
account opening.
 Agree with bank’s term and condition.
 Two PP size photo of each party.
 The account holders should decide whether to accept one’s signature or both
for the cheque at the time of opening.
 If ATM‟s cards are needed then on the negotiation of both parties, one’s
signature should be accepted along with extra one photo of him/her.
 Fill the cash voucher having minimum balance for account opening and
extra charges for ATM, Mobile services.

For Diplomatic Mission/Embassy:

 Letter of Mission/Embassy.
 Authorization of operation of the account.
 Name, address, photo of the account operator and documents confirming the
address.
 34

 Other required documents (may be specified from time to time).

For Non-Resident Nepalese:
 Name, surname, and Address.
 Name of father or husband three generation details.
 Documents disclosing source of income.
 Agreement with employer organization/Appointment letter.
 Copy of Citizenship/Passport/National ID card.
 Address and contact place in Nepal.
 Other required documents (may be specified from time to time).
For Cooperatives:
 Name of Institution.
 Address.
 Telephone Number (if available)
 Constitution
 Name and address of Board of Directors (telephone number, if available)
 Photos, copy of citizenship certificate or National ID Card and three
generation details of Board of Directors.
 Board’s resolution regarding opening of account and authorization to
conduct financial transactions.
 Other required documents (may be specified from time to time.)
2. Cheque Book Issuance
The cheque book is issued to the account holder to facilitate them to withdraw money,
after opening of the account. The cheque book is usually given on the next day of
account opened and is free of cost. The cheque book is provided only to the account
holder or to a person authorized to the account holder normally called as agent, after
verifying the signature. In case the requisition is lost, a new cheque book is drawn
after proper verification of the signature of the account.
Role of internee:
 Check the signature of customer.
 Take the signature of customer in cheque book registered.
 Provide cheque book to the customer.
3. Account Closing and Requirement
 35

In case, the account holder wishes to close the existing account they need to fill up the
form of account closing. It is a rare case as closing the account means closing with the
bank. Customer should mention the reason for closing the account. In most of the case
customer close the account by the necessity of money or going somewhere out of the
country.
Role of internee:
 Provide form of account closing to the customer
 Asked reason for account closing.
 Check all the document needed for account closing.
Procedures to Close an Account are given below:
 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.
 If the customer is willing to close the account must fill up the form
specifying the reason.
 The client is then asked to return all his account related belongingness like
ATM card and the cheque book.
 Then finally the account of the applicant is closed with certain charges.
Preparing and Distributing Functions
Another activity performed in the customer service department is preparing and
distribution of various requested documents to 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 and password
 SMS banking

Cheque Book Distribution

Clients, especially the ones holding the account in the bank request for the cheque
book by filling the requisition slip which is in between the cheque. In case if it is not
there, customer has to write a written application regarding the issue of new cheque
 36

and pay Rs.50 charges for it, bank will deliver cheque next day to customer. For new
customer account number and cheque should be distributed next day after the opening
of account.
The account holder should be presented for receiving the cheque otherwise
application should be written that on the behalf of my absence kindly handover
cheque to respected application bearer person attached with id proof of bearer.

ATM Distribution
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 enquiry, pin number change, etc. The process of
distributing the ATM to the customer is as follows:
 ATM should be provided within 45 days of application.
 In case of Bharat Yatra card, it should be provided on demand.
 Account holders should be presented for collection otherwise application
should write same as cheque process.
 Account holder should sign in the register of Issuance of ATM prepared by
internee at the time of delivering.
 Internee should make entry on two registers i.e. .one has to be signed by the
card’s holder mentioning the name, address, account number, card number,
validity on it and another is to enter the code number for relative ATM.
 Before delivering ATM signed, should be verify as well as suggesting him/her
to sign at back side of ATM in between the white box for verifying the
belonginess of ATM when it is Trapped in near future of other ATM.
E-Banking User id and Password Distribution
The account holder can use the free internet facility of NSBL to know about the
balance, statement, fund transfer, etc. The official website of NSBL is
www.nsbl.com.np. But he/she must install java system in his/her mobile or laptop for
view and transaction.
SMS Banking Distribution
 37

The account holder can use the mobile facility to know about the balance, statement,
etc. For this customer must installed Mero Sathi apps. of NSBL or go to their message
box and write the code given by the bank and send it to four digits given by the bank
itself.
Miscellaneous Function
 Cheque book binding
 Making entry on register
 Filing the documents
 Complain handling
 Updating the records.
 Currier entry in register book
 Photocopy
Problem Identified and Solved
During internship, the working environment was so friendly and familiar that the
staffs over there were always at there to help me to solve the problem. But some of
the problems aroused at that period are:
 Language problems
Most of the customers in the NSBL were Indian. They were not so familiar with the
Nepali language and not able to fill detailed information in the form. In this situation
internee helped them to fill the detailed information in the form. And also provide the
detailed information about their account.
 Convincing Customers
Sometimes the customers did not understand about NSBL‟s product and services and
it was difficult to convince them. There were even times when customers behaved in a
rude way. In spite of harsh behavior of the customers the intern behaved properly and
always tried to solve the situation.
 Filing problem
While doing filing, the files were not properly kept in its place. So, it becomes
difficult for internee to find the related files when required. To solve this problem,
internee manages all the files as per the application of filing and indexing and kept in
proper place so that internee can provide at required time to the customer or staff of
the NSBL bank.
 Savvy customers
 38

Some customers were not sure about their decision i.e., they were in dilemma for
choosing the Products/Services. They tend to change their mind within very short
time. So, it sometimes tends to be difficult to make their decision the final one.
-Example: -Whether to take mobile service or not
-Whether to take e-banking or not.
When the internee faced this type of situation, the customer was always provided with
the proper knowledge about various services of the bank which helped then to take
finally an appropriate decision.
 Complaints regarding ATM service
There were lots of complaints regarding the ATM services at Srijana Chowk branch.
The ATM machine would go blank when the customers did not use to insert the card
properly, the machine did not dispense any cash, but the amount was deducted from
their account, the card stock and so on. And the customers used to get very aggressive
especially when they don’t have cheque. In such conditions the internee advice
customer to fill required firm mentioning his/her problem and submit to the concerned
department for quick response.
 Dealing with Physically disabled customer.
In Srijana Chowk branch, sometimes internee has to deal with physically disabled
customer means dumb, deaf and illiterate at the same time. In such case internee try to
deal with such customer in sign language with the help of Mr. Suresh Shrestha. It was
big problems I have faced during internship period.

3. Observed/Felt Gap
During internship period, Internee felt many gaps in Srijana Chowk, branch. Some of
them are:
o Lack of Employees:
In Srijana Chowk branch, there is lack of skill employees at CSD. Most of the tasks
of Customer Service Department are done only by the intern. In the absence of intern,
a CSD task must be done by remittance staff, as results pressurize in tasks by staff.
o Long filling form’s procedure:
Filling of form by the customer in CSD is long procedure. There should be
requirement of Computer for reducing the documentation tasks. For examples: Instead
 39

of filling new account opening form or others document, it can quick and easily will
be done in computer by Internee.
o Absence of Banking Browser:
There is absence of banking browser i.e., guidelines for customer to know the types of
product/ services with their features and interest. Customer doesn’t remind about all
the products/services, their features, charges and so on. At that time browser helps
them for better understanding.
o Absence of Marketing Department:
There is absence of marketing department at bank. They don’t believe in the
marketing because the bank has created its brand. But they don’t realize that world is
full of competition and struggle. If in any place they are lacking, then sure others will
take benefits of it. Therefore, like others bank has maintaining marketing department.
Now a day’s e.g., NIC ASIA, Nepal SBI bank should also have to kept marketing
department.
o Unsystematically Store house.
At Srijana Chowk branch, the storeroom is not systematically managed. All the
documents were not kept properly at proper place as a result facing problem for quick
location of require documents in bulk.
o Late distribution of ATM cards:
Almost many banks give ATM‟s card to their customer within 7-15 days, but NSBL
takes minimum 45 days to issue new ATM‟s card as deliver by State Bank of India as
a parent company.
 CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Summary
An internship is a unique aspect of education that integrates study with planned and
supervised career related work experience. It is a short-term training conducted in an
organization where theoretical knowledge is practically implemented. The graduating
Students conduct internship in their final semester depending upon the course
adopted.

The internship report is submitted as per the requirement of the bachelor’s in business
administration (BBA) course, which comprises of 8 critical credit hours. The main
objective of the study is to help the intern expose theoretical knowledge gained inside
the classroom to the real working environment. The internship program also helped to
understand the activities performed by various departments as well as the working
principles of banks.

The intern conducted internship in NSBL for a period two months. The internee was
able to gain practical experience and knowledge about the work environment during
the internship.
During the internship, the internee performed the duties assigned to her under the
guidance and supervision of the supervisor. The internee was able to gain knowledge
about the customer service department of the bank. The internee also learnt about
work responsibility, work ethics, and culture in the workplace, and the internee also
learnt about time management and communication skills which are very important for
doing a job properly.

5.2 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 in
the era of modern banking either customer satisfaction measured as a focal
 41

objective. while doing business. Today NSBL holds one of the strongest networks,
network in and outside Nepal compared to other financial institution 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 a good culture and discipline in organization.
The internship at NSBL helped internee to gain in depth knowledge about the real
working environment, interpersonal and communication skills, organizational culture
and behavior, professional qualities and building spirit as well as working samples of
commercial banks.
During internship, internee has learnt many aspects other than the banking as to
socialize make the working environment friendlier. The internee has also learnt the
importance of behavioral issues. The customers are to be treated properly and friendly
way for their full satisfaction. This will help the bank to achieve success by creating
loyal customers and retaining them.
Performing internship in NSBL helped internee a lot to gain knowledge about
systems, manual works, and the working environment of different department of the
bank. NSBL tries its best to serve their customers fully. It is one of the most
promising banks today and could increase their market share by improving their
customer satisfaction by overcoming their weakness and doing their best to retain
quality services.
Overall, the internship program has been very fruitful in enhancing the practical
knowledge of the internee.

5.3 Lesson Learnt

Knowledge of both theoretical and practical aspects and exposure in the practical field
is to be competitive in the world. Real work setting is a diverse situation than the
classroom learning 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 inter-personal 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 one’s career development. In the due period I got
 42

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 staff etc.
Beside these superficial lessons I got an opportunity to learn various below mentioned
lesson too:
 Knowledge about the banking terms and condition
The first and the most important lesson learnt by the intern was the understanding of
the banking terms and condition. The internee understood what process was applied to
the customer from opening the account to closing the account. The internee also had
knowledge about what documents are needed for different accounts.
 Learn about opening and closing Account in the bank
During the internship the internee had learnt about how to open account and closed
the account with providing the different kind of service on the customer demand and
as per need.
 Kinds of account and their purpose
During the internship the internee had learnt the different types of account and the
purpose for which the account had been opened. The major accounts opened by the
client were saving accounts, company account like sole-proprietorship, partnership,
private and fixed account.
 Risk factor
While working as an intern at NSBL the internee could analyze the risk factor
involved in working at a bank. The information at a bank about customer is very
confidential in nature and the intern had to follow the rules and regulations of the
bank. The information regarding balance enquiry should not be given in phone.
 Interpersonal skills
Since internee was appointed as an independent consultant so dealing with other
employee was a must. The eight weeks tenure of internship enhanced the
interpersonal skill of the internee. The image and reputation of the bank to the
customer depends on how the banks representative performs. The attractive way of
tackling with customer query means a lot. Moreover, one should always be patient
and listen to other while counseling.
 Boost up confidence level
 43

The tenure of two months of internship geared up the confidence level. Nervousness
always results in poor performance whereas over confidence may also lead to failure.
The internee learnt to work independently and the communication with other
members helped to boost the confidence level.
 Practical implication of theoretical knowledge
While working as an internee in NSBL for two months, the internee analyzed most of
theoretical knowledge learnt in master’s degree being practically implemented in the
workplace. The marketing concept of customer focused strategy, accounting concept,
managerial finance, computer application and many other management
theories/concepts were being applied practically.
 Knowledge about the organizational environment and work culture
The intern has been able to gain experience and knowledge about the organizational
environment and work culture of NSBL. Internee has learned most of the things
through observation and interaction with the personnel of different departments of the
bank.
 Maintained customer relations
During the time of internship internee must deal with the different type of the
customer. Internee got chance to meet with different type of the customers. Handling
the different types of customers with a smile, builds up the confidence and
interpersonal communication skills.
Some of the other lessons learnt during the time of intern are as follows:
 Learnt the value of time, communication skill, leadership quality, personality,
teamwork, and other behavioral factors in the organizational setting.
 The internee was able to build up the level of confidence by interacting with
the different types of customers.
 Learnt the overall banking operation in customer service department in the
NSBL.
 Experience that for positive result the coordination between employees of
different level is important.
 Experience the importance of time factor in bank for both customer and
employee.
 Learned to communicate effectively with the people improving inter-personal
skills.
 44

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

 Learned the importance of displayed emotion on the workplace.

5.4 Recommendation
During the study, some issues were observed which needed some improvements for
better acceptance of the bank towards its customers. Nothing in the earth is perfect;
there is always pace for improvement so to maintain the service standard and improve
customer satisfaction, some recommendations are as follows:
 As per the customer feedback, the processing time of documents was found to
be very time consuming. So, the bank should provide prompt services with
latest technology and computerized equipment’s. The customers should be
served without making them to wait.
 Improvements in IT system need to be made from time to time for the smooth
operating of the banking activities which will benefit the growth of the bank.
 There are many commercial bank and financial institutions as competitor to
NSBL bank. Hence the bank should introduce new products and services for
the customers to attract them.
 Few departments like remittance and marketing suffers from the understaffing,
thus the bank should hire skilled manpower to increase the efficiency of the
bank.
 Though the bank has installed new software for its operation, however, almost
all department suffers from the sudden breakdown of the software due to
which the customer needs to wait for longer time to get their work done. Thus,
the bank needs to properly manage its software and other computer programs.
 The rotation of work is very much important to create reduce monotonous in
the employee. It helps to reduce workload and monotonous even in case of
employee absent. In addition to this, employees will opportunity to learn new
things.
 For the interns, there must be specification of jobs about what to do. Bank
should provide separate employee as a mentor to internee who will teach them
technical things.
 Paid some amount of salary to the Internee because during his/her internship
they also work sincerely like one of employee of that bank by following every
instruction which is instructed which by supervisor.
45
 REFERENCES
Agrawal, G. R. (2004). Human Resource Management. M.K. Publisher and
Distributors
Annual Report of Nepal SBI bank Limited. Annual Report of Nepal SBI bank
Limited Annual Report of Nepal SBI bank limited.
Banjara,P.(2012) Background of Internship Retrieved from:// Internship report.
Blogspot.com
Edusanjal.(n.d). Bachelor of Business Administration,
Retrieved from: https:// edusanjal.com/course/bachelor-of-business-administration-
bba-tribhuvan-university.
Manandhar, K.D. & S.B. Pokharel (2012). Financial Markets and Institutions.
Asmita Publications
McGee, R., & Kroesschell, C. (2013). Local accountabilities in fragile contexts:
experiences from Nepal
Shrestha, M.K. & R. Gurung, (2010). Financial Markets and Institutions,
Kathmandu: Asmita Books Publication & Distributions Pvt. Ltd.
Subedi, P. (2013). Banking Management of ADB, Utsav books Publication Pvt. Ltd.
Thapa, K. (2022). Banking Law and Regulations, Khanal publication and
Distributor. http://www.nrb.org.np http://www.nsbl.org.com.np
http://www.sbi.org.com.in
 7

APPENDIXES
Appendix I

Financial Position of NSBL

S.N Particular FY 2077-78 FY 2078-79

1 Paid of capital 949.36 982.59
2 Reserve & surplus 590.65 728.76
3 Debenture 302.83 302.87
4 Deposits 10,623.85 11,971.02
5 Loan & advance (excluding staff loans) 10,154.88 11,069.37
6 Investment & placements 2,133.75 2,363.64
7 Total Assets 13,780.88 15,310.28
8 Return on Assets (%) 0.70 1.07
9 Return on Equity (%) 6.26 9.57
10 Loan loss provision % (as per NRB) 0.23 0.15
11 Earning per share (RS) 10.12 16.67
 8

Appendix II
Number of Branches with Extension Counter of NSBL
S.N Name of provinces No. of Branch with Extension Counter
1 Koshi 18
2 Madhesh 13
3 Bagmati 38
4 Gandaki 16
5 Lumbini 22
6 Karnali 3
7 Sudurpashchim 8
 9

Appendix III
Number of Employees of NSBL of Srijana Chowk Branch

S. N Designation NO. of employees

1 Branch manager 1
2 Operation In charge 1
3 Loan Department 3
4 Remittance Department 1
5 CSD Department 1
6 Teller 2
 10

Appendix IV
Organization Chart of NSBL, Srijana Chowk Branch

Branch Manager

Remittance In charge Operation In charge Loan Manager

Customer Service
Department Teller