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Wednesday, August 5, 2015

Internship Report of SBI Bank of Nepal

CHAPTER I
INTRODUCTION
1.1.Background
Internship is the part of BBA curriculum as prescribed by the Tribhuvan 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.
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.
1.3Methodology
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.
1.3.1Organization 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,Gongabu. The bank accepted my
request and I was provided opportunity to do my internship at Nepal SBI Bank Limited, Branch
Office at Gongabu.
1.3.2 Placement

During the eight weeks of internship, intern was mostly placed inCustomer 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.

Table 1.1:  Placement Schedule

Weeks

Name of department 1st 2nd 3rd 4th 5th 6th 7th 8th
Customer Service
* * * * * * * *
Department
 1.3.3Duration
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 2 nd  April to
2nd   June (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:
         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.

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.
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 theBanks (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 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 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 26 th April,
1956, on which date, Nepal Rastra Bank (NRB) was established. NBL was a semi government
bank. RastriyaBanijya 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.
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.
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
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.
 Issue of credit instruments such as travelerscheque, letter of credit, draft, master cards
etc.
 Exchange of foreign currency under the direction of NRB.
 Publication of monthly and annual journals, bulletins, reports.

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. 200 Crores, Rs. 186.93 Crores and Rs. 186.93 Crores, respectively.
 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 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.

Figure no: 1 Share distribution of NSBL

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 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.
3.5Board of Directors
    The Board of Directors of NSBL is listed in the table below
Table no.3Board of Directors

Position Name of position holder

Chairman Hasana Sharma
Director Hemanta G Contractor
Director Rajan Srinivasan
Director Vijay Jasuja
Director Manoj K Agrawal
Director Nirajan K Tibrewala
Director Keshav Raj Acharya
Managing Director Alok Kumar Sharma

3.6Management 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: 4Management team

Name Designation
Alok K Sharma Managing Director
Tulsi Ram Gautam Chief Credit Officer
V.K. Tyagi Chief Operating Officer
Anil K Singh Chief Finance Officer
Dev Raj Adhikari Regional Manager(Nepalgunj)
(Source:- nepalsbi.com)
3.7 Departments of the Organization
1     Customer Service Department(CSD)
2     Bills & Remittance Department(RMT)
3     Customers Relations 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 & Reconciliation Department
13 General Service Department
3.8Products 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:   
         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
a.       Loan Department
         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
3. Other Services
b.      Prepaid Card
c.       Online Banking System
         E-banking
         SMS banking
d.      Utility Bill Payment Service
         NTC Bill Payment
         UTL Bill Payment
         LIC Insurance Premium
e.       Accounts Department
         Clearing
         Transfer
         Cash
         Reconciliation
 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 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 counseling 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 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
         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 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 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 iswww.nepalsbi.com.np.The account holder must fill
the form of internet banking and request for the password, codes, etc.
e. SMS Banking Distribution:
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, Gongabu 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
 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
 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 behavior,
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
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 behavior, 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).

  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.

BIBLIOGRAPHY
Books and Annual Report
Manandar ,K.D.& Pokhrel ,S.B. (2012). Marketing financial
services .Kathmandu     Buddha Publication
Nepal SBI Bank Ltd.  (2011/ 2012). Annual Report . Kathmandu: NSBI
Thapa, K. (2010). Financial institutions and market . Kathmandu; Ashmita
Publication.         
Websites
www.nepalsbi.com.np
www.nrb.org.np
 ANNEX:1.1  ORGANISATIONAL
STRUCTURE of NSBL

 
s
  

ANNEX:1.2 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 Ltd. 1966/01/23 Singhadurbarplaza, Kathmandu
3 Nabil Bank Ltd. 1984/07/16 Kantipath, Kathmandu
4 Nepal Investment Bank Nepal Ltd. 1986/02/27 Durbarmarg, Kathmandu
5 Standard Chartered Bank Ltd. 1987/01/30 Nayabaneshwor, Kathmandu
6 Himalayan Bank Ltd. 1993/01/18 Thamel, Kathmandu
7 Nepal SBI Bank Ltd. 1993/07/07 Hattisar, Kathmandu
8 Nepal Bangladesh Bank Ltd. 1994/06/05 Nayabaneshwor, Kathmandu
9 Everest Bank Ltd. 1994/10/18 Lazimpat, Kathmandu
10 Bank of Kathmandu Ltd. 1995/03/12 Kamaladi, Kathmandu
11 Nepal Credit and Commerce Bank Ltd. 1966/10/14 Siddharthanagar, Rupandehi
12 Lumbini Bank Ltd. 1998/07/17 Narayangadh, Chitwan
13 Machhapuchhre Bank Ltd. 2000/10/03 Prithivichowk, Pokhara, Kaski
14 Kumari Bank Ltd. 2001/04/03 Durbarmarg, Kathmandu
15 Laxmi Bank Ltd. 2002/04/03 Adarsanagar, Birjung, Parsa

s16 Siddhartha Bank Ltd. 2002/12/24 Kamaladi, Kathmandu

17 Agricultural Development Bank Ltd 1968/01/02 Ramshahpath, Kathmandu

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

19 Citizens Bank International Ltd. 2007/06/21 Kamaladi, Kathmandu

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

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

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

23 Grand Bank Nepal Ltd. 2008/05/25 Kamaladi, Kathmandu

24 NMB Bank Ltd. 2008/06/05 Babarmahal, Kathmandu

25 Kist Bank Ltd. 2009/05/07 Anamnagar, Kathmandu

26 Janata Bank Nepal Ltd. 2010/04/05 Newbaneshor, Kathmandu

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

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

29 Century Commercial Bank Ltd. 2012/02/15 Putalisadak, Kathmandu

30 NIC Asia Bank Ltd 2013.06.30  Kathmandu

(Source:- nrb.org.np  as on mid April, 2012s

ANNEX:1.3 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
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
Nepalgunj Regional Office , Nepalgunj

Far – Western region branches(3 branches)

Dhangadi Tikapur
Mahendranagar

Posted by Pawan Joshi at 6:20 AM 

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