GENERAL BANKING PRACTICES ON

NMB BANK LIMITED, GOLMADHI BRANCH

An Internship Report

Submitted by

Lejita Munankarmi

Bhaktapur Multiple Campus

Exam Roll No: 21895/18
TU Registration No.: 7-2-20-456-2018

Submitted to

Office of the Dean

Faculty of Management Tribhuvan
University

In the partial fulfillment of the requirement of the degree of

Bachelor of Business Administration (BBA)

Dudhpati, Bhaktapur
August, 2023
INTERNSHIP CERTIFICATE

ii
 DECLARATION

This Internship Report entitled “GENERAL BANKING PRACTICES ON NMB

BANK LIMITED, GOLMADHI BRANCH” which is submitted by me in partial
fulfillment of the requirements for the reward of BBA degree of Tribhuvan University
comprises only my original work and due acknowledgements have been made to
materials used in the report.

…………………..

Lejita Munanharmi
September, 2023

iii
 BONAFIDE CERTIFICATE
Certified that this Internship Report
GENERAL BANKING PRACTICES ON NMB BANK LIMITED, GOLMADHI
BRANCH
is the bonafide work of
Lejita Munankarmi
who carried out the Internship Report under my supervision. This report is forwarded
for examination.

…………………… ………………………
Tulsi Ram Ghemosu Tulsi Ram Ghemosu
Supervisor BBA Director

…………………….
External Examiner Date:

ACKNOWLEDGEMENT

iv
The entire report of this report has been made simply to give the complete shape to
the partial fulfillment of the BBA 8th semester program of Tribhuvan University
entitled “GENERAL BANKING PRACTICES ON NMB BANK LIMITED,
GOLMADHI BRANCH”. I have ardor a great deal to embellish the subject matter in
a most simple and easily understandable form.

I owe a deep sense of gratitude to our honorable Campus Chief Dr. Kabita Luitel,
Director Tulsi Ram Ghemosu, and Head of the BBA Research Sub Committee Dr.
Gyani Shah Malla for extending their cooperation and guidance in this report
creation.

I would like to thank NMB Bank Ltd., which accepted my presence and gave me an
opportunity to work with them. I would further like to express my gratitude to Mrs.
Bibhu Amatya (Branch Manager) for the support and co-operation extended to me.
My sincere thanks go to Mr. Karna Prasad Maka (Operation in-charge), Mr.
Rameshwor Karmacharya (BDM), Mrs. Nirmala Shrestha (BDM), and Mrs. Gita
Humagain (Senior Assistant) for their unflagging help, assistance and cooperation.

Finally, it is a pleasure to express my sincere gratitude to my supervisor Mr.

Tulsi Ram Ghemosu Sir for his support throughout the research process. He had
devoted his valuable time and efforts in patiently guiding me to complete this
project. His wide knowledge and logical way of thinking created great value for me.
Besides, his understanding, encouragement, and personal guidance have provided a
good basis for this present form of project report. Therefore, I would like to convey
my special thanks to him for his valuable input.

Lejita Munankarmi
August, 2023

Table of Contents

INTERNSHIP COMPLETION LETTER ........................................................... ii

DECLARATION .................................................................................................. iii

v
BONAFIDE CERTIFICATE .............................................................................. iv

ACKNOWLEDGEMENT ..................................................................................... v

TABLE OF CONTENT…………………………………………………..……..vi

LIST OF TABLE ............................................................................................... viii

LIST OF FIGURE ............................................................................................... ix

ABBREVIATION.................................................................................................. x

CHAPTER I ......................................................................................................... 1
INTRODUCTION................................................................................................ 1

1.1 Background of the Study ..............................................................................

1
1.2 Objectives of the Study .................................................................................
3
1.3 Study
Methods……………………………………………………………...3
1.4 Research Methodology .................................................................................
3
1.4.1 Source of Data ........................................................................................ 3
1.4.2 Selection of Organization ....................................................................... 4
1.4.3 Placement in Organization ..................................................................... 4
1.4.4 Duration of the Internship ...................................................................... 4
1.5 Activities Performed in the Organization ...................................................... 5
CHAPTER II ........................................................................................................ 6
INTRODUCTION OF COMMERCIAL BANK .............................................. 6

2.1 Introduction ...................................................................................................

6
2.2 Meaning of Bank ..........................................................................................
7
2.3 Evolution of Banking in Nepal .....................................................................
8
CHAPTER III .................................................................................................... 11
INTRODUCTION OF THE ORGANIZATION ............................................ 11

3.1 Introduction of NMB Bank Limited ...........................................................

11
3.2 Vision and Mission Statement ....................................................................
12

vi
 3.3 Objectives of NMB Bank ...........................................................................
13
3.4 Major Market and Customers .....................................................................
14
3.5 Product and Services ...................................................................................
15
3.5.1 Deposit ................................................................................................. 15
3.5.2 Loan and Advances .............................................................................. 17
3.5.3 Other Facilities ..................................................................................... 19
3.6 Organizational Design and Structure ..........................................................
20
CHAPTER IV..................................................................................................... 23
JOB PROFILE AND ACTIVITIES PERFORMED ...................................... 23

4.1 Activities Performed at NMB .....................................................................

23
4.2 Problems Solved .........................................................................................
30
4.3 Intern’s Key Observation ............................................................................
30
4.4 SWOT Analysis ..........................................................................................
31
CHAPTER V ...................................................................................................... 33
CONCLUSION AND LESSON LEARNT ...................................................... 33

5.1 Conclusion ..................................................................................................

33
5.2 Lesson Learnt ..............................................................................................
34
5.3 Observed Gap between Theory and Practice ..............................................
35
5.4 Feedback to the Organization .....................................................................
36
5.5 Feedback to College/University..................................................................
37
REFERENCES

vii
 x
CHAPTER I

INTRODUCTION

1.1 Background of the Study

This report has been prepared as a partial fulfillment of the degree of Bachelor in
Business Administration (BBA), an undergraduate course under Tribhuvan University
(TU). It focuses on middle-level managerial skill and knowledge enhancement under
the supervision of the faculty of management (FOM) to deliver applied education in
the fields of economics, finance, marketing, business environment, and information
technology along with current affairs and changes that occur in the management field.
To achieve this practical based learning process and enhance the knowledge of the
students, students must undergo internship programs in their final semester i.e. Eighth
semester. This internship report has been prepared after 8 weeks of internship at NMB
Bank Limited.

An internship is an opportunity offered by an employer to potential employees, called

interns, to work at a firm for a fixed period of time. In other words, it is a work-
related experience for individuals who wish to develop hands-on work experience in
a certain occupational field. As an internship nourishes the student with a pragmatic
concept of job design and job requirements, it is often considered the first step in
career development and serves as a great platform for students to outcast their
knowledge in practical life. That means it gives students or individuals to observe,
learn, understand, and participate in the corporate culture. Thus, the internship
program can be regarded as a fruitful opportunity for the students of BBA to be
familiar with the corporate work environment of Nepal. (Suwal, 2019). To sum up,
internship program teaches the student like us about corporate culture, develops
public relationship skills, make us competent and provides us an excellent working
 1

experiences by helping us to develop our inner ability and level of understanding to

compete in this complex and sophisticated age.

Today, business has become dynamic in nature due to the rapid development of
information technology. A healthy financial system is essential for the healthy and v
sustainable growth of the country. It must be able to meet the increasingly
sophisticated demands that are placed on it. A well-developed financial system
promotes investment by identifying and financing lucrative business opportunities;
mobilizing savings, and efficiently allocating the resources that help in diversifying
the risk and exchange of goods and services. In Nepal, a number of financial
institutions with varied natures of operation have come into existence offering a wide
range of financial services.

The prosperity and development of the nation depend on how the financial system
plays a role in the transfer of funds from the saver to the user. In Nepal, a number of
financial institutions with varied natures of operation have come into existence
offering a wide range of financial companies. Till now the financial sector of Nepal
includes 20 commercial banks, 17 development banks, 17 finance companies, and 57
microfinance institutions as of latest data provided by Nepal Rastra Bank.

In order to accomplish this course of the internship, I have chosen NMB Bank
Limited (Golmadhi Branch). This report consists of the intern’s work experience
gained during the 8 weeks of internship dated from 10 th April 2023 to 15th June 2023
at the NMB Bank Limited and the main focus is on the Customer Service Department
(CSD).

This report is basically a Research internship or dissertation internship, whose

purpose being the fulfilment of university participation criteria as well as the need of
organizational exposure and acceptance. There is wider diversification in a
commercial bank being a player of financial market and an intern will not remain
confined to a particular subject. Therefore, choosing a bank can be perceived as a
wise decision as they can offer wider area under same roof.
The main focus of this report is to let the reader know about the customer service at
the bank. Customer Service Department is the most important department of any
bank. The CSD is the first place a customer approaches after entering a bank. It deals
 2

with various services offered by the bank. It responds to the quires of the customers
giving appropriate solutions to their problems promptly. All the information required
by the customer is dispersed through the CSD. The information could be related to
deposit schemes, loan schemes, consulting, document requirements, etc.

1.2 Objectives of the Study

The internship program is undertaken for the partial fulfillment of the requirements
for the bachelor's degree of Bachelors of Business Administration . The main
objective of this study is to relate the theoretical knowledge with the practical ones.
Besides, the development of communication skills, decision-making, and confidence
build-up are some of the objectives of this internship program. This report is focused
on analyzing the present situation of NMB Bank Limited and its contributions to the
economic development of the country. The other specific objectives are as follows:

• To gain a better understanding of the banking system and its functions.

• To recognize the services being offered and new schemes to be launched by
the bank.
• To obtain career opportunity insights through interaction, observation, and
work experience in the organization.

1.3 Study Methods

The report encompasses a wide range of data that has been collected from various
methods. They are:

• Observation of operations: This report is prepared mainly on the basis of

observation of the working environment of the bank. All the operations of the
bank are closely observed that make it easy to prepare this report. Visited
banks and practiced as the intern in order to associate with different aspects of
the banks.
 3

• Interaction with staff and customers: Met with the customer of the bank and
had a direct contact with them for relevant information. Informal discussion
and interaction with the staff of bank.

1.4 Research Methodology

Research methodology is a systematic investigation of a particular subject matter. It is
concerned with the various methods and techniques used in the process of research
studies. The preparation of the internship report needed certain information,
qualitative and quantitative data. Therefore, a systematic approach and research
methodology were followed to collect the needed information which includes primary
and secondary sources. This report has been prepared on the basis of 8-week
internship experience at NMB Bank Limited. Thus, the major portion of the facts
included in the report has been obtained through the personal experience of the intern
throughout the internship.

1.4.1 Source of Data

The purpose of internship program is to gain the professional experience through a
direct contact with the organization i.e. being part of the organization, working full
time at the organization as an intern for a stipulated period of time. The present
internship focuses in the direct involvement in the process and personal observation,
which helps the students to get a better insight. This study is mostly descriptive in
nature where the facts and findings are presented in a systematic manner. The
methods of data collection used for this project are as follows:

Primary Data

• Personal observation of work environment during internship period.

• Tasks performed as assigned by the supervisors and their instruction briefings
with questionnaires
• Informal discussion with the staffs of the bank.

Secondary Data

• Annual report of NMB Bank Limited

• Publications of NMB Bank Limited
• Website based information of NMB Bank Limited
 4

1.4.2 Selection of Organization

Organization selection is a crucial factor in an internship because it is the place where
intern gains practical knowledge, builds up confidence level, develops the
interpersonal skills etc. At the present scenario, among different fields related with the
financial sector one of the major field is the banking sector. Being a student of
Banking and Finance, commercial banks was selected for the course of internship

Taking into consideration the numerous options available for the internship, it was a
right choice about joining NMB Bank Limited because of the interest in banking
sectors. The NMB Bank Limited is renowned in the banking sector for its good
services for the customers and also has won Bank of the year award 2017, 2018,
2020, and 2021.
That’s why among all the commercial banks NMB Bank Limited was chosen for
internship.

1.4.3 Placement in Organization

The Internee was placed in Golmadi branch of NMB as per the convenience and
decision of Human Resource Department. The internee was first guided by the senior
assistant for making the internee familiar with the environment of bank. Regarding
placements, the internee was placed in a single department i.e. in the Customer
Service Department. The support and cooperation the internee got in the bank was
tremendous. Internee got the opportunity to work and observe the task over the
Customer Service Department in the Golmadhi Branch.

1.4.4 Duration of the Internship

According to the Faculty of Management, Tribhuvan University (T.U.) the duration of
internship for BBA program is two months i.e. 8 weeks. The intern successfully
completed internship from 10th April, 2023 to 15th June, 2023. During the internship
period of eight weeks, the internee have done various jobs assigned in customer
department and was able to gain overall knowledge of the commercial banking
operations. The internee was able to learn the bank’s culture, work environment and
working procedures regarding banking activities in detail.

Table 1
Duration of Internship
Date of Initiation Date of Ending
 5

10th April, 2023 15th June, 2023

Source: Practical Experience

1.5 Activities Performed in the Organization

The internship was completed from NMB Bank Limited, Golmadhi Branch. The
internee was placed at the customer service department hence the activities were
focused in the customer service department. The internee worked at customer service
department which is nerve center of the bank generating most of the businesses of the
company. Listed below are the works done in customer service department.

• Attending to phone calls regarding customer queries.

• Dealing with the regular and new customers of the bank.

• Fulfilling the queries of customers about the products and their interest rates.

• Providing different types of forms like Account opening form, Account

closing form, Demat opening form, FD opening form, Debit card and Mobile
Banking application form, Internet banking form, customer request form,
Statement request form, Cheque requisition form, etc.

• Collecting necessary documents and checking forms of the customers required

for account opening procedures.

• Keeping records of account opening, account closing, transfer of account, and

customer taking additional facilities such as Internet banking, Mobile banking,
ATM Service, etc.

• Filling out the application form for a dormant account to activate the freeze
account.

• Preparation of checkbooks, recording the information and providing it to the

respective customer after verifying the signature.

• Photocopy / Printing / Scanning

• Updating KYC

• Informing the customers about their maturity time of their fixed deposit
account.
 6

• Handling customer grievances.

CHAPTER II

INTRODUCTION OF COMMERCIAL BANK

2.1 Introduction
Banking sector definitely plays a vital role in the overall development of an economy.
A bank is a depository financial institution which purchases money and sells money
for money. It is a financial intermediary that accepts deposits and channels those
deposits into lending activities, either directly by loaning or indirectly through capital
market. It accepts deposits from surplus units and provides loan to deficit units. It
collects scattered money from public in the form of deposit by providing them certain
percent of interest and distributes the accumulated fund to others, who are in need of
money by charging certain percent of interest, which is usually higher than the
interest that it gives to the depositors. Banks also provide financial services, such as
wealth management, currency exchange and safe deposit boxes. Banks are typically
concerned with managing withdrawals and receiving deposits as well as supplying
short-term loans to individuals and small businesses. Consumers primarily use these
banks for basic checking and savings accounts, certificates of deposit (CDs) and
home mortgages.

Bank is the main institution which help to accumulate the scattered idle saving of the
general people and utilizes it in the productive sector in terms of providing loan
advances and investing in the various securities or other to get maximum possible
return from that. But only accepting deposit and advancing loan doesn’t fulfill the
meaning of modern bank. Today bank are providing wide range of financial services
providing different categories of loan, locker facilities, underwriting of shares,
controlling the monetary activities of a country etc. banking plays a significant role in
the development of nation’s economy. Banks are major financial institutions playing
vital role in the economic development of the country.

The bank is a financial institution, which accepts deposits from the public in different
accounts and grant loans to individuals and corporations against their securities. So
 7

banks are those institutions that offer the widest range of financial services especially
credit, guarantee, saving and payment services.

2.2 Meaning of Bank

The word Bank came from Italian word “Banco” and French word “Banque” which
means giving cash loan and exchange of money from bench system. Banking concept
existed even in the ancient period when the goldsmiths and the rich people used to
issue the receipts to the common people against the promise of safekeeping their
valuable items. The banking history began in 1764 A.D. Since then banking in began
to prosper.
His Majesty’s government in Nepal adopted liberal open economy after restoration of
democracy in the country. As a result several commercial banks were established and
came up to operation. Bank is the most important financial institution and largest
financial intermediaries in the economy. Banks must be identified by the function
they prefer in the economy. Bank collect scattered money from public providing them
interest and provide those fund to the deficit unit. Also this collection becomes the
sources of bank to invest so, bank is known as the dealer of money.

According to BAFIA, 2063, “Bank means a corporate body incorporated to carry on

financial transactions as referred by law.”

According to Nepal Rastra Bank, “Bank is a financial institution, which provides

financial services that may be in the form of accepting deposits, advancing loan,
providing necessary technical advices, dealing over foreign currencies, remitting
funds, etc.”

According to Kindly, “Bank is an establishment as may be requires and safety met

and to which individual’s interest money which is not required by them.”

2.3 Evolution of Banking in Nepal

The history of banking in Nepal may be described as a component of gradual and
ordinary evolution in the financial and economic sphere in the Nepalese life. Even
now the financial system is still in the evolutionary phase. At the early stage,
zamindars were known as banks. The establishment of ‘Kausi Tosha Khana’ during
the regime of
 8

Great Prithivi Narayan Shah and ‘Tejarath Adda’, during the Prime Ministership of
Ranoddip Singh in 1933 B.S. (1876 A.D.), were taken as the initial step for the
development of institutional banking system. Tejarath provided credit loans to the
general people at 5 percent interest rate on securities such as gold, silver, and other
ornaments. Later ‘Tejarath’ was replaced by the first commercial bank, Nepal Bank
Limited established on 1994 B.S.

After the establishment of Nepal Bank Ltd. Nepal started to realize the need of the
central bank to control and regulate the banking activities and as the result of that
realization, the Central Bank of Nepal “Nepal Rastra Bank” was established in 2013
B.S. according to Nepal Rastra Bank Act 2013. After the establishment of NRB the
government of Nepal started taking the initiatives of establishing the Banks and hence
Rastriya Banijya Bank and Agriculture Development Bank was established in 2022
B.S. and 2024 B.S. Nepalese banking sector hadn’t experienced much growth till
1980s because of the closed policies of Nepal Government. Till 1980s banking
industry hadn’t been opened to the private sectors and the foreign investments. But
after 1980’s Nepal government liberalized its banking policies and opened the door
for the private and foreign sectors. The privatization, tariff adjustments, liberalization
of industrial licensing, easing of terms of foreign investments, liberal trade and
foreign exchange regime were the motivating factors for the development of Nepalese
Banking Sector.
Establishment of Nepal Arab Bank Ltd (now NABIL Bank) in 1984 brought a new
sensation in the Nepalese banking industry as it was the first foreign joint venture
bank in Nepal. After that, one after another many joint venture banks started to
operate in Nepal. Some foreign ventures are also established in Nepal such as Nepal
Bangladesh Bank, Standard Chartered Bank, Nepal Arab Bank, State Bank of India,
ICICI Bank, and Nepal Sri Lanka Merchant Bank etc.

From these definitions, we can conclude that a bank is a financial institution that
collects deposits, gives loan, exchanges cheque, cash transfers and so on which is
involved mainly in accepting deposits and mobilizing them to provide loans and
invest in various sectors. It is a financial intermediary that channelizes funds and is
involved in money management to give continuity to the economic system of the
country. Banks are providing a wide range of services like remittance, financial
counseling, securities investment, bank assurance, lockbox facilities, swift transfer
 9

etc. However, these changes are brought out by change in the needs and demands of
the people.

Today, the banking sector is more liberalized and modernized and systematic
managed. There are various types of bank working in modern banking system in
Nepal. It includes central, development, commercial, financial, co-operative and
Micro Credit
(Grameen) banks. As per the recent data from NRB, there are only 27 Commercial
Banks, 17 Development Banks, 17 Finance Companies, 66 Microfinance
Development Banks and 1 Infrastructure Development Bank. Technology is changing
day by day. And changed technology affects the traditional method of the service of
bank.

Banking software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card,
Prepaid Card etc. services are available in the banking system in Nepal. It helps both
customers and banks to operate and conduct activities more efficiently and
effectively.

These commercial banks and financial institutions have played significant roles in
creating banking habit among the people, widening area and business communities
and the government in various ways. For the purpose of regulation and controlled
NRB had divided the depository financial institutions into four classes on the basis of
minimum paid up capital requirement and functions. This classification is a unique
feature of Nepalese banking industry only and there is no such classification globally.

The Nepalese version of the classification of depository financial institutions

according to the Nepal Rastra Bank and their present number are presented in the
table below
Table 2
Nepalese Financial Institutions
Category Component Minimum Paid up capital Number
requirement (Million Rs.)

A Commercial Banks 8000 20

B Development Banks  17
National Level
2500
 4 to 10 Districts 1200
 10

1 to 3 Districts 500

C Finance Companies  17
National level
+ 800
4 to 10 Districts
 1 to 3 Districts 400
D Micro Finance Institution 57
 National level 100
 4 to 10 Districts 60

 1 to 3 Districts 20

Source: www.nrb.org.np
CHAPTER III

INTRODUCTION OF THE ORGANIZATION

3.1 Introduction of NMB Bank Limited

NMB bank Ltd, the first commercial bank of Nepal that has been able to upgrade
from a finance company to full-fledge commercial bank, was financially
institutionalized in the year 1996 A.D. in Durbarmarg, Kathmandu. Nepal Merchant
Banking and Finance Ltd, the name of the institution was among the leading financial
institutions in its category until May 2008 when the transformation process for the
upgradation was complete and changed its name to NMB Bank Limited.

NMB is the brain child of leading Nepali Entrepreneurs with the dream of framing the
ultimate in merchant Banking and Finance services. Harnessing from its strength on
Merchant Banking the Bank has decided to broaden its scope of services by building
synergies to its current operation. This unprecedented event has been possible by the
way of strong commitment and confidence of all the stakeholders’ viz. customers,
promoters, stockholders, regulators, and employees.

NMB strives to provide its professional financial services know-how to proper in

today’s competitive environment. To achieve its goal, NMB has assembled a team of
young and dynamic professionals to look after the day operation of the institution.
The professionalism and the experience gained in various sector of finance over the
years will enable NMB to serve its customers in a more reliable and flexible manner.
The company is striving to become a lender in the market for financial and merchant
 11

banking activities. In short span of its existence, NMB has been recognized as a
premier Merchant Bank in Nepal.

Since NMB is managed by the experienced bankers and professionals, it is considered

as the leading bank in Nepal that is committed to the society. The commitment has
always been to behave ethically and to contribute towards the improvement of quality
of life of the people, the community, and the greater society. The bank has done well
in its core area. Today, the bank provides full range of services to corporate and retail
customer and is expanding its scale of operations. The bank believes in building
strong relationships with all the stakeholders, particularly the customers, is crucial for
the growth and prosperity. The strategy is to create strong customer base with the
diversified client supported by an extensive branch network. They accord the highest
priority to a quality service experience and are always looking for ways to improve
their service standard.

There has been a continuous surge in the number of the financial institutions in the
country. This has heightened competition among these institutions which is not good
for the economy as a whole. Instead of quantity, NMB focuses on enhancing the
quality and strength of the existing institutions. Currently it is promoted by members
of leading business conglomerates in association with young Lian Reality, Malaysia
and Employee Provident Fund of Nepal. It is one of the leading Merchant
(investment) Bankers at present in Nepal. It also enjoys number one status among the
existing finance companies in terms of profitability, market capitalization, deposits,
risk In September 2016, the bank signed a joint venture agreement with the
Netherlands Development Finance Company (FMO) a Dutch development bank
which holds
13.69%, following which FMO became the single largest shareholder of the bank.

NMB Bank has been recognized as ‘Bank of the Year in Nepal’ for two consecutive
years, 2017 and 2018 by The Banker, a service of the Financial Times, for its leading
role in the country’s financial sector by using new digital technologies. In September
2019 NMB Bank has acquired Om Development Bank. And also NMB Bank was
awarded ‘Bank of the Year 2021’. In the same year, for the first time in the history of
Nepal, the bank was awarded the title of ‘Bank of the Year 2021 Asia’ by The Banker,
Financial Times, London. It has altogether 201 branches across the nation providing
retail and commercial banking services.
 12

3.2 Vision and Mission Statement

Vision
Building communities through responsible banking, preferred by all stakeholders,
enabling customers and clients achieve this financial goals thus contributing towards
prosperous Nepal Mission

• Helping clients and customers to achieve financial security

• Strengthening and promoting sustainable socio economic development by
working actively with local and international stakeholders

• Being responsible for bringing about positive environmental and social

impacts
• Promoting self reliance through financial products for real economy
• Creating an innovative climate within the organization, utilizing the skills and
potential of staff.
• Be innovative with the changing time  Be a team player and deliver results
together  Be responsible to our actions.
• Be prudent for sustainable and consistent growth  Be committed to services
excellence

3.3 Objectives of NMB Bank

The objectives of NMB Bank are as follows:

• To develop a customer oriented service culture with special emphasis on

customer care and service.

• To increase the market share by following discipline growth strategy

• To leverage the technology platform and open scalable system to achieve cost
effective operation, efficient MIS, improved delivery capabilities and high
service standards.

• To develop innovative products and services that attracts targeted customers

and market segments.

• To continue to develop products and services that reduces the cost of funds.

• To maintain a high quality asset portfolio to achieve strong and sustainable

returns and to continuously build shareholders’ value.
 13

• To explore new avenues for growth and profitability.

3.4 Major Market and Customers

NMB Bank Ltd. is an “A” class commercial bank classified by Central Bank of
Nepal. NMB Bank has been able to expand its services through establishment of
branches throughout the country. People of Nepal from various geographic regions
are able to purchase the products and use the services provided by the bank. The
market for the bank is widespread over the places of Nepal

The major markets and customer of NMB Bank are medium income individual as
well as institution. The most valuable strength is the trust customers they have from
the establishment of the bank and creating win-win situation to its customers. The
bank serves more than 1000000 customers nationwide through our business like
Personal Banking, Business Banking, Infrastructure financing and other financial
services.

NMB Bank is the pioneer and front- runner in retail lending introducing Direct
Housing Finance, Vehicle Loan Scheme, Education Loan Scheme, and Loan against
future Lease Rental and scheme for professionals as also the loan against Lease
Rentals of the properties. Therefore the major market of NMB Bank consists of
Business Sectors, Household Sectors, Government Sectors and Foreigners. Similarly,
the major customers consist of Business Professionals, Household Customers and
Foreigners.

List of expected Customers

a) Students
b) Younger
c) Consumer
d) Low value customers
e) Middle class people for savings
f)High value customers
g) Investors
h) New Firms and entrepreneurs
i) Shareholders
j) Employees, officials and salary persons Foreigners and immigran
 14

3.5 Product and Services

NMB Bank Limited also generates its revenue mainly from its credit ability and
finances its credit creation from deposits. Thus, mainly the products can be
categorized into two major heading deposits and loans. NMB Bank offers a wide
variety of products and services, catering to wide range of customers from
individuals, to mis-market local corporate to multinationals and large public sector
companies. NMB Bank’s policy is to extend quality services to its customer as
properly as possible. The product and services of NMB Bank are listed below:

1. Deposits
2. Loans
3. Other facilities

• ATM

• Remittance

• M-Banking

• I-Banking

• Locker Facility

3.5.1 Deposit
Deposits are the major sources of fund in NMB Bank. Deposits are the funds
collected by the bank from account holder that may be individuals and corporate
groups in the bank for safekeeping and is subject to withdrawal on the demand of the
depositor or at the time of maturity of stated period. Deposits are the major liability
for any banks and in case of liquidation; deposits are settled first and foremost. As
banks operates its activities depending on Other People’s Money (OPM). Deposits are
facilitated through variety of account and they are:

a) Fixed Deposit account

b) Current account

c) Call account

d) Saving account

a) Fixed Deposit Account

 15

A fixed deposits also known as term or time deposit. A fixed account requires the
depositor to deposit a fixed sum of money for a fixed period of time. A penal interest
is charged in case of withdrawal of fixed deposit prior maturity. The interest is paid
on quarterly basis. Fixed account can be opened by individuals, minors, clubs,
societies, associations and trusts. The interest rates provided on fixed deposit on the
basis of time period are 11.03%. Fixed deposit must be of minimum 3 months and
above.

b) Current Account

A current account is non-interest bearing account. It is also known as demand deposit.

Only the corporate bodies can open a current. It is especially designed for corporate
bodies that are indulged in frequent transactions. NMB Bank provides the current
account holder with cheque book. A semiannual statement is sent to keep track of the
transactions carried out by the account holder. Additionally, the bank may provide the
statement daily, weekly, or monthly as per the request made.

c) Call Account

A call Account is ideal for carrying out day to day business transactions by the
corporate on which corporate have the privilege of earning interest. A call deposit is
also known as hybrid deposit, as it is combination of current and fixed deposit
invested for meeting customer financial need in a flexible manner.

d) Saving Account

A saving account is an interest bearing account. In NMB Bank, interest is calculated

on daily balance and credited to the account on quarterly basis. The minimum balance
for saving account depends on the nature of saving account. Such balance is subject
to any incidental charges that NMB Bank specifies during the period. It is a
transactional interest bearing account wherein a deposit is placed with the Bank for an
unspecified period which can be withdrawn whenever required through different
means like ATM or cheque. The wide range of saving accounts in NMB Bank are:

a. NMB You-Wah! Digi Savings

b. NMB Video Account Opening

c. NMB Investor Savings

 16

d. NMB Sahara Bachat Khata

e. NMB Jeevan Chakra

f. NMB Premium Super Talab Khata

g. Social On boarding via Viber

h. NMB Umanga Bachat Khata

i. NMB Talab Khata

j. Manyajan Bachat Khata

k. Nari Bachat

l. Atulya Bachat

3.5.2 Loan and Advances

NMB provides wide range of loan products for both individual and corporate. It is the
major source for income earning of the bank. The loan product and services are:

a) NMB Sapati
NMB Sapati is an AI driven digital loan product offered to customers. It is a collateral
free and short-term personal loan to salaried individuals who have maintained payroll
accounts with NMB.
b) NMB Electronic Auto Loan
Electric Car Loan under NMB Auto Loan is a Retail Loan product targeted towards
Electric four wheeler-buyers.

c) NMB Pre-approved home loan

NMB Pre-approved home loan provides customers with flexibility to get their home
loan limit sanctioned before selection/finalization of property. This facilitates
customers with bargaining power in the real estate market while negotiating for
property, simplifying purchase decision. The loan eligibility is assessed based on
income details provided by the customer.

1) Ballooning and Reverse Ballooning (Home Loan)

NMB Ballooning Housing Loan is a unique variant of housing loan that facilitates
repayment of principal on Home Loans with a flexible approach that allows for EMI
 17

payment on part of the loan while the other part of the loan can be settled in bulk on
yearly basis.

The Reserve Ballooning loan option allows repayment of principal on Home Loans
by a unique modality which allows for EMI to diminish over every 5 to 10 years as
chosen and required by the customer.

2) NMB Fixed Rate Home Loan

NMB fixed Rate home loan is one of the best product offering in the Housing Loan
segment. NMB Fixed Rate Home loan is the Variant of NMB Home Loan product,
with interest rate fixed for 5 years. That offer comes with fixed interest rate of 8.5%
per annum with the said rate being locked for 5 years. We offer Home Loan for the
purchase of residential land & and building, apartment including
construction/renovation/extension of buildings.

3) Loan against property (LAP)

It is a flexible & and specially designed product having unique features like longer
tenure, attractive interest rate, and simple & speedy processing, which shall
accommodate immediate financial needs of our valued customers.

4) Land Purchase Loan

A loan for land purchase is a credit to a customer for the purchase of a plot of land. It
is specially designed for individuals who wish to purchase land for future residential
purposes.

5) NMB Gold Loan

NMB Gold Loan provides financing to individuals for personal borrowing
requirements by leveraging gold and silver in possession of borrowers.

6) Education Loan

Education Loan is extended to students or sponsor of the student to enroll for higher
study abroad or within Nepal.

7) Loan Against Fixed Deposit

 18

Loan against Fixed Deposit (FD) of the Bank or any other financial institution is
extended to the clients. Financing amount is up to 90 percent of the value of the
deposit. 8) Other Facilities

a) ATM
Debit Card, Credit Card, Visa Card is a smart alternative to withdrawal cash from
ATM, ATM enables wider access to more than 142 ATM terminals of NMB in Nepal.
With NMB cards you can access your account 24-hours a day, 7 days a week and
enjoy greater convenience to facilitate your banking and financial needs. International
US Dollar Card has been introduced for international online payments (ecommerce)
while purchasing various goods and services.

b) Remittance
It is an electronic online cash exchange result of the bank intended to encourage
exchange of assets by Nepalese exiles working/living in remote nations and in
addition for residential exchange of assets. It is quick, moderate and secure.

c) M-Banking
Mobile banking is a service provided by a bank or other financial institution that
allows its customers to conduct a range of financial transactions remotely using a
mobile device such as a mobile phone or tablet, and using software usually called
eNMB app, provided by the financial institutions for the purpose. Mobile banking is
usually available on 24 hour basis. Some financial institutions have restrictions on
which accounts may be accessed through mobile banking as well as a limit on the
amount that can be transacted.

d) Locker Facility
NMB Safe Deposit Locker is facility furnished to the individual and institutional
customers who prefer to safe deposit precious gems & jewelries and important
documents to evade the probability of increasing theft, burglary and fire. The Safe
Deposit Locker has been the first choice for the safest custody of the valuable goods
with flexibility of time to store and take away when required. The Bank has varied
sizes of Safe Deposit Locker to select from. Lockers facility can be availed from
selective Branches of the Bank.
 19

e) E Banking
Web based keeping money otherwise called web saving money e- managing an
account or virtual banking, E-saving money or virtual saving money, is an electronic
installment framework that empowers clients of bank or other monetary organization
to lead a scope of budgetary exchanges through the monetary institution’s site.

3.6 Organizational Design and Structure

The Board of Directors is responsible for policy-making and guidance to the
management. The private nominates all Board members including the Chairman. The
executive power is vested in the Chief Executive Officer (CEO). NMB Bank has 201
branch networks in all over Nepal. The internal audit department monitors the work
of the branches and regional offices.

Board of Directors (BOD) of NMB Bank Limited

The board of directors consists of 6 members. As per the directives of NRB, there are
1 Chairperson and 5 Directors. Mr. Pawan Kumar Golyan is the chairman of NMB
Bank Limited.

Table 3
Board of Directors

Name of person Position

Pawan Kumar Golyan Chairman (Promoter Shareholder)
Nico Pijl Director (Promoter Shareholder)
Jeevan Kumar Katwal Director (Promoter Shareholder)
Yogendra Lal Pradhan Director (Public Shareholder)
Uttam Bhlon Director (Public Shareholder)

Sirish Kumar Murarka Director (Public Shareholder)

Source: www.nmb.com.np

Table 4
Management Committee of NMB Bank Limited
 20

Name of person Position

Sunil KC Chief Executive Officer
Pradeep Pradhan Chief Audit Executive
Sudesh Upadhyaya Chief Business and Strategy Officer
Govind Ghimire Chief Business Officer
Navin Manandhar Chief Risk Officer
Pramod Kumar Dahal Chief Operating
Officer/ Company Secretary
Roshan Regmi Head Retail Banking
Shreejesh Ghimire Chief Investment Officer
Binay Dahal Head Business and Planning
(Province)
Source: www.nmb.com.np

Branch
Manager

Bank
Operation Credit
Development Security
Department Department
Manager

Driver
Tailor Letter of Credit
Guard

CSD Retails Messenger

Clearing

Figure 1 Organizational Design and Structure of NMB Bank, Golmadhi Branch

CHAPTER IV JOB PROFILE AND ACTIVITIES PERFORMED

4.1 Activities Performed at NMB

In NMB Bank, I worked in the Customer Service Department. As a service oriented
company the major responsibilities were to give better services to the clients
 21

promptly on their demand and CSD is the central part for giving services. I was
mainly given the responsibility of service related issues under the supervision of the
respective officers. In the period of my internship I helped the organization by sharing
the workload of the respective staffs. The working environment was very comfortable
to work in with friendly staffs which made the work easier. The major responsibilities
given to me are as follows:

a) Customer counseling
b) Opening an account
c) Closing an account
d) Issuance of cheque book
e) Bank statement printing
f) Phone communication handling
g) Scanning and Photocopy of Document
h) Other activities performed

a) Customer counseling
Customer counseling is most important functions of customer service department. It
is the responsibility of intern to provide the information regarding the bank and its
various products and services. For dealing customers in CSD the staff should have
adequate knowledge about the various products and the services of the bank and
should have good communication skill to communicate correct, precisely and politely.
The enquiry about bank rules, problems of ATM cards, procedures of opening a new
account, fund transfers were the major queries to be answered. Apart from face to
face interaction, the internee has to receive incoming calls and respond to the queries.
The regular follow up and the contacts with customer is essential to flow important
messages such as pending documents yet to be provided, delivery of cheque books.

b) Opening an account

Account opening is one of the crucial functions of the commercial bank. The
responsibility of the customer service starts with opening of new account of the new
customer informing them about the facilities available in the organization. The
customer should fill up the form provided by the bank to open an account in the bank.
I learnt about the documents required to open a new account. By opening an account
bank bridge its customers to avail the facilities provided by the bank. After the form
 22

is filled, account number is given as per register sequence. Customer’s data are stored
in the computer system after verification by operation in-charge. The account opening
form along with other necessary documents is kept in a file in a serial order as per
account number for future reference.

The requirements of documents paper for opening of new account varies from
institution to institution according to its nature and characteristics. Here, account
opening procedures carried out in NMB bank is as below:

 Collect documents
For opening any account, customer fills the required application form and hand over
to CSD along with required documents i.e. citizenship and a recent photo. In case of
opening firm’s account, the firm’s logo must be stamped along with the necessary
signatures of related personnel as per requirement.

 Check documents as per NMB & KYC Guidelines

Customer Service Department ensures that required forms are dully filled by
customer and the documents are in line with NMB policy and KYC guidelines. In
case if not all documents are submitted but the account is opened with the approval of
the manager pending remark should be made on the application form.

 Verify Document with original

The documents that are necessary of account opening must be clearly verified with
original documents to make sure that the documents are original. Verified stamp and
Person-identified stamp is kept in the form after the verification of the required
document with the original document

 Signature Scanning
The signature must be scanned and approved by the department head on the same day
of account opening and one photocopy of the signature is kept in the bank. The
signature of the customer done in a signature specimen card is scanned with a scanner
and the record is kept for verification for future use.

 Assign Account Number

After verification of documents and required information is entered in the computer

software, the software generates the account number automatically, that account
number is manually written down in the account opening register and account
 23

opening form, the account number is provided to the customer. Banker’s slip and
deposit slips are also further passed to the department head for necessary entries and
record keeping purpose.

The bank opens new account two different ways:

For opening Personal account

The basic requirement of opening a personal account:

• The account holder must be present in business desk in the time of
opening an account.
• Fill up the prescribed application form.
• Original copy of identification document i.e. citizenship or passport and
photocopy to be attached with the application form.
• One passport size photograph of account holder.

Corporate account

Any registered firms, organizations and corporations can open corporate account in
the bank for smooth business transactions. A corporate account can be opened in all
the convertible currencies directed by NRB. The firms can open the account by
providing the prescribed documents. All the original documents should be presented
for verification. The basic requirements of opening a corporate account are:

For Proprietorship Firm

• Declaration of Sole Proprietorship.

• Copy of Firm Registration Certificate.
• Copy of Income Tax Registration Certificate.
• Copy of identification paper of promoter/ account operators’ two copies of
recent photograph of proprietor should also be obtained.

For Partnership Firm

• Letter of Partnership duly signed by all partners.

• Copy of Partnership Deed duly attested.
• Certified copy of Partnership Registration.
• Identification papers of all partners and account operators.
 24

• Income tax registration/renewed certificate.

For Corporate Bodies

• Certified copies of Memorandum and Articles of Association of the company.

• List of existing directors.
• Resolution of Board of Directors to open and operate the account.
• Company registration and Income Tax registration certificate.
• Identification papers of directors and account operators.
• Notification of appointment of office bearers as authorized account operators
in case of Corporations.
• Account, the account holder should visit the bank himself/herself. Similarly, in
the case of a joint account, all the account holders should be present.

Settlement of the balance after deducting all the required Process of opening new
account (saving and current)

• Provide new account opening form to the customers (individual or corporate).

• After the form has been filled up by the customer, review the form so that all
the required information is provided.Check all the essential documents and
verify them with original one.

• The customer is requested to fill out the deposit slip to deposit the minimum
balance of the concerned scheme and charges a necessary charge for ATM
card and other services if applicable.

• The details of customer are entered into the bank software (i.e. Finacle) to get
customer id and account number.

• The signatures and stamps are scanned and loaded in the bank software

• The Operation in-charge verify and approve the account

• The account opening form along with other necessary documents is kept in a
file in a serial order as per account number for future reference.

c) Closing of an account
Customers also need to close their accounts because of different reasons. While
closing an account, customers are required to fill up the account closing form with
 25

valid reason. After filling up the form, the last balance that is to be refunded should
be calculated referring the account opening form that is preserved in the file. After
that, an account should be closed and refund the remaining balance to the customer.
The presence of the account holder is a must while closing the account. The cheque
book and ATM card, if received must be returned to the bank.

Procedure for account closing

• Need of the written application by the account holder
• Return of the cheque book and the ATM provided to the customer

• Calculate the required charges according to the type of the account opened

• Return of the rest amount to the respective customer

• Finally it is updated in the system and the form is filed in closed account file.

d) Issuance of cheque book

Cheques are written order to someone’s bank to pay money from his or her account to
the person to whom the cheque is made. The procedure for issuing a cheque book is:

• Authorized signature must be obtained on the account opening form to issue

cheque book for new account.

• For old account, cheque book can be issued against cheque requisition form.
• Number of leaves for a new account are provided as per the type of account
and for old account number of leaves are provided as per the customers
demand.
• The account holder should be present while receiving cheque book.
• In case the account holder is not present, the agent who has come to receive
the cheque should provide his/her name, identity card with mobile number and
sign the requisition slip to receive the cheque.
• Once cheque book has been delivered make an entry in the chequebook issue
register all the particulars related to that chequebook.
• Chequebook needs to be finally rechecked and approved by the Operation
charge/ Branch Manager at the moment of handing over to the recipient.
e) Bank statement
NMB bank provides the balance statement free of cost to those customers who have
their account. A Bank statement is printed through the appropriate command using the
banking software “Finacle”. The procedure for receiving bank statements is:
 26

• Customer should fill up a statement request form to receive a balance

statement.
• The name of the account holder, account number, time period, and signature
should be mentioned.
• In the case of any organization, an authorized signature with the company’s
stamp is compulsory.
• In case the account holder is not present, the agent who has come to receive
the statement should provide his/her name, identity card with mobile number
and sign the statement request form to receive the statement.

• Statement should be printed by bank staff.

• Finally the statement should be recorded in the statement issued register and
provide the customer with the stamp of the bank

f) Phone Communication Handling

CSD is responsible for handling phone calls coming from outside. They are
responsible for answering questions from customers and provide account related
information via telephone. The CSD staff passes the customer's phone call to other
related departments which was demanded by the customer.

g) Scanning and Photocopy of Document

Internee scanned and photocopied various documents like photographs, citizenship,
passports, driving license. The documents needed to be properly scanned and
photocopied and entered into system so that it could be accessed easily when it is
needed.

h) Filling the KYC

KYC it stands for ‘Know Your Customer’. KYC policy has been designed in line with
the money laundering prevention Act, 2008. It basically includes collection and
analysis of basic identity information, creation of an expectation of customer’s
transactional behavior, name, and address of customer in details. All the banks fill up
the KYC form of its customer because it minimized the risk. Each and every bank
performs this task.

i) Other activities performed

• Helping customers to fill up the forms or vouchers
 27

• Answering to the customers queries

• Checking balance or a/c number of the clients
• Helping old age people and physically-challenged people to withdraw the
money.

4.2 Problems Solved

Working in NMB Bank, the internee was exposed to real life experience as a
professional. The internee was given responsibilities with expectations of better
performance. The internee learnt many things as the internee tackled with the various
tasks. During the internee’s internship tenure, the internee performed best and solved
problems such as:
• Customers have various queries and complain. Main problem was delay due to
the huge number of customers and few numbers of staffs. So interns worked as
a staff and convinced them to have patience. Dealing with them and handling
them was very challenging work.
• Some customers are unknown about cheques and some does not know how to
fill the cheques. And some customers faced problem to draw their money from
their account. So interns wrote the cheques and taught them how to write the
cheques.

• Many customers had not understood the meaning of KYC and so they denied
and ignored to fill the KYC firm. Intern made them clear about it and then let
them to fill the firm with required documents.
• There was organizational structure problem because flow of work was difficult
due to distance between OI and CSD. Intern worked as a bridge between them.
• Intern helped the customers to fill the deposit slips, account opening forms,
Statement request forms, and fixed deposit account opening forms.
• Assisted in filling up the different forms, especially for those who could not
read and write.

4.3 Intern’s Key Observation

NMB bank is operating in society to make people easily access the banking world. It
has widened the area of its operation by opening branches aiming to reach every
people in the country. It was a great experience to be a part of NMB and work as an
intern. The seniors of the institution were very helpful and were always ready to
impart their knowledge and solve the queries at their easy time.
 28

There were numerous things the internee observed while working at NMB
commercial bank which the internee otherwise would not have known. As the
internee select a bank for my internship the most things the internee observe are the
processes of banking functions which are as follows:

• Interns are assigned with the responsibility as per their potentialities and skills.

• The employees of NMB are friendly and equally helpful. They do not disturb
or irritate if the workload is heavy.

• Customers are satisfied with the services provided.

• Bank also gets involved in social activities such as blood donation programs,
and distributing water at the time of the festival to the local people.

• The working environment is peaceful and friendly with employees and

customers.

• Flexible Lunch hours so that the branch is not empty.

• Transforming the academic bookish knowledge into practical knowledge and
understanding how the concepts and theories are applied in the real working
environment.

• The teamwork that is needed in order to accomplish the task

• On-the-job training and Job rotation are more focused to reduce the monotony.

4.4 SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business. It
involves specifying the objective of the business venture or project and identifying
the internal and external factors that are favorable and unfavorable to achieving that
objective

On the course of our internship schedule, several strengths and weaknesses of the
concerned department were revealed which are as follows:

A. Strengths
 29

1. Friendly staffs with high convincing power who works hard for customer
driven bank.
2. Highly dedicated set of employees who are well aware of all the duties
and functions.
3. Well knowledge of the banking software (Finacle) and all the procedures
required for maintaining the records of the customers.
4. New Adequate number of branches all over Nepal. 5. New Adequate
number of branches all over Nepal.

6. Well qualified and professional management team.

7. Diversified product and services provided to customers.

8. High capital base compared to other banks.

B. Weaknesses

1. Need of effective manpower planning.

2. The inventories are not taken well care off.

3. Limited number of staffs.

4. Customer complaints and grievances should be given serious concern in

today’s cut- competition.
5. Electronic machinery such as printers, cheque-writer machines
malfunctioned from time to time due to which customer service was
affected.

C. Opportunities

1. Prospects to enter into a new market.

2. It can use advanced technology to increase the efficiency of business

3. Targeting new customers in urban and rural areas.

4. Stability in political and economic sectors will increase investment

opportunities.
5. Concentrate on providing new types of services to the customers.
 30

6. It can come up with new innovative products and services.

7. Technology is being applied.

D. Threats
1. Customers are attracted to the other competitors for better services.

2. Unstable political system that creates hindrances to the smooth operation

of the bank.
3. Lack of stable government.

4. Unfavorable socio-economic condition of the country.

5. The economy is in recession which may make customers lose faith in

banks.

6. Various rules and regulations imposed by the NRB.

CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Conclusion
The internship is always a great opportunity for students to get field experience and
bridge the gap between theoretical and practical knowledge. It was a great exposure
to working as an internee at NMB Bank Ltd which brought the practical knowledge
that the internee lacked and gained some experience in banking activities. Intern
learned interpersonal skills, communicational skills, and technical skills that helped
me to build my knowledge in a broad way. The interpersonal skills helped us to
interact with the various types of customers and their various problems. The
negotiation skills also got increased developing the softness and being more formal
while communicating with the people or clients. A positive attitude also developed
while dealing with different natures of customers.

The feeling of being responsible towards a work was very new and challenging
though it was performed to the best efforts possible. Dealing with customers and the
responsibility of making decisions in difficult situations has helped me a lot to have
an insight into my future career. One of the important experiences learned from the
internship program is knowing the various facts of an organization and their
functioning and learning about customers and the ability of the employee to handle
the various types of customers with varied needs, demands, and temperaments.
 31

Working at NMB Bank, helped the internee gain a lot of experience; especially in
dealing with customers. The staff there were really cooperative and helpful. It was
really a great opportunity to serve as an intern in such a successful commercial bank.
It was a learning-by-doing kind of opportunity and the important thing is the internee
have been successful to make a change within herself. The internee is very pleased to
conclude that NMB Bank is one of the best banks with a friendly environment and
excellent customer service.
• The eight-week internship period was not sufficient enough to understand the
banking system as a whole. However, the eight-week internship period has
proved very valuable in understanding the services provided in CSD.
• Learned that the customers are the main drivers of any financial institutions,
they should be pleased by offering the quality services which basically
depends on the quick service and pleasing personality of the staff
• Learned to communicate and deal with customers belonging to different
backgrounds.
• Confidence development is essential while dealing with the customer.
• Learned to use the photocopy machine and scanner to copy and scan
documents as the process of documentation in the bank.
• Understood the importance of Cooperation, coordination, and interconnection
between the different departments of a bank for smooth functioning.
• Learned the institutional culture and the values in the corporate world.
• Punctuality, time management, and patience are very important in work
workplace.
• Learned to handle the grievances of the customers.
• Learned procedures for opening various types of accounts and activities
related to issuing cheques and fixed deposit receipts, handling Internet
banking and mobile banking, etc.
• Gained basic knowledge of operating finacle software like opening accounts,
cheque printing, statement printing, scan signature and photograph, Customer
Screening, PEP Scanning, etc.

5.2 Lesson Learnt

The internship program helps to learn the dynamics of work culture, professionalism,
and systems in the business world. Most of the things learned during this period are
 32

related to the practical implications and knowledge exposure. Some of the valuable
lessons the internee learned are as follows:

• Able to relate the theoretical aspects to practical implications in the banking

industry found at the bank is its privacy which cannot be displayed.
• The customers are the main drivers of any financial institution, they should be
pleased by offering quality services which basically depend on quick service
and the pleasing personality of the staff.

• Intern learned about importance of the time management and the need for
communication skills.
• Learned about various products of the bank and its working procedure.
• Learned to communicate and deal with customers belonging to different
classes.
• Learned to socialize with the customers
• One should always try to find out what is going on inside the customer’s mind
and behave according to the situation.
• Readiness to work and showing a ‘never say no attitude are the keys to
success  Gain basic knowledge of operating FINACLE software.
• Wearing a formal dress, greeting, being polite, having patience, and being
sincere in the bank.
• Intern was able to handle problems and queries related to walk-ins and
existing customers.
On the whole, observations, as an intern provided meaningful feedback about how
real banking situations are different from the theoretical world of knowledge and in
the future how to deal with the challenges and overcome them.

5.3 Observed Gap between Theory and Practice

The internship program in BBA is the first practical exposure for the students. The
knowledge gained from theoretical and practical fields seems to be quite different.
Even though there is a gap between theory and practice, the concept of the theory is
important in the workplace. It has helped students to reduce the gap between
theoretical knowledge and practical knowledge. The 8-week internship program has
helped students to experience real-world organization. During the period of
internship, the following gaps were observed in the workplace:
 33

• The internee is placed in CSD, hence the internee couldn’t apply the
managerial aspect of the bank though BBA aims to develop middle-level
management.

• No particular theory can be developed regarding how to deal with customers

because each and every customer is different according to their perception and
attitude.

• There is no strict description of the job and responsibility. For example: staff
in the Remittance department may have to move to the Customer Service
Department and perform related tasks as per requirement.

• Development of computerized in the bank creates technological environment

and documented working environment where theories are less practically
applied.

• Since the entire activity of the bank is dependent upon the computer network,
any interruption or failure of the network results in work delays and customer
dissatisfaction.

5.4 Feedback to the Organization

It was a great honor to do an internship in one of the most renowned organizations in
Nepal. Regarding the feedback, the internee is very thankful to all the staff of NMB
Bank with whom the internee spent 8 weeks of her life and got a chance to
understand the functioning of banking institutions more deeply. The organization is
well enough but there are some drawbacks as nothing can be perfect. So here are the
feedback to the institution to recover the limited drawbacks and to make it better and
accessible:

• Whenever some staffs would be absent in any departments, the other staffs
would have a tough time handling the job there. So the capital should maintain
a replacement staff in case of absenteeism.

• The technologies should be updated as the existing technologies are slowing

the processes.
 34

• However, NMB has been able to launch products according to the time. More
flexibility is to be brought up. This will help customers to utilize the product
to the fullest.
• NMB Bank must consider the latest media of advertisements. Use of social
networking sites such as Facebook, Instagram, Twitter, TikTok, etc. must be
boosted. The customer’s query must be replied to instantly on Facebook
pages.
• One of the main problems of NMB is its ATM. There are numerous complaints
regarding its ATM. The bank is advised to maintain the ATM on a regular
basis.
• Various programs to be conducted so as to attract more people towards the
banking services and its facilities.

5.1 Feedback to College/University

Internship is one of the ways that helps every student to know the real things
happening in the organization besides the theory study. Some of the recommendations
to the college / University could be:

• The university can be suggested to focus more on on-the-job training than

theory classes.

• The college can be suggested to design the courses which will make the student
more updated with the latest technology.

• College should maintain favorable relationships with various manufacturing

companies so that student can get access to such organization.

• Collage should be aware about the difficulties of students faced during intern
period and they should prepare giving enough time for students to complete
their syllabus and internship. So that it does not hampers the study of students.

• Timely feedback about the intern should be taken from the supervisor to know
about the progress report and their job status.

• The college should be more cooperative with student problems.

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REFERENCES

Bhandari, D. (2007). Financial Institution and markets. Kathmandu: Asmita

Publication.

Bhandari, D.R. (2004).Introduction to Banking. In Banking and Insurance (3rd ed.,

24). Kathmandu, Nepal: Aayush Publication.

Thapa, K. (2019). Banking Law and Regulations. Kathmandu: Khanal Publication.