Professional Documents
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Internship Report of Bank of Kathmandu L
Internship Report of Bank of Kathmandu L
INTRODUCTION
1.1 Background
The internship program has been designed by Tribhuvan University for the partial fulfillment of
the degree of Bachelor in Business Administration (BBA) for specialization in banking and
finance. As a student of Business Administration, I have always been attracted to Banking
career. The career charm, grace, handsome incentives and profound professional recognition are
some salient features that have led to Banking as one of the most sought after professional
careers in Nepal. As per the degree requirement stipulated by Tribhuvan University, students in
Bachelor’s degree program have to complete eight weeks of internship. The internship program
has been an excellent opportunity for us to understand and experience banking sector first hand.
This approach facilitates students by allowing them to know the working environment and to
tackle various related circumstances before they actually start to work. Since the students gain
essential knowledge and skills during this period, they can easily learn to adjust in the
environment afterwards. As a BBA student of eighth semester of Kathmandu Model College, I
had done my 8 weeks long internship at Bank of Kathmandu Limited, New Road Branch.
Tribhuvan University is the first University of Nepal incorporated in 1959. Ever its inception, it
has been providing higher education in different streams. It has offered BBA to make the
graduate competent and skilled professional middle k\level managers in business and other
organizations. It is the new approach in the academic pursuit with eight semesters covering a
period of four years.
The activities carried out to prepare this report were entirely done at Bank of Kathmandu
Limited, New Road Branch. This report is very helpful to those who would like to know about
general banking services.
It was a great opportunity to work as intern in BOK limited. This experience gives me huge
opportunity to change my behaviors and helped me to utilize conceptual knowledge in the
specific area of the study. During my internship, I found BOK’s culture open, friendly and
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supportive. By providing aspiring graduates with moreover, it also provides an opportunity to the
organization to access fresh graduates for some time before employing any of them. Thus,
internship is career enhancing program which makes student professional in their fields.
1.3 Methodology
While preparing the internship report both the primary as well as secondary sources of data have
been used. Some data’s are directly collected from staffs of the bank whereas some data’s are
collected from website of the bank, reports of the bank, brochures, and other publications of the
bank.
1.3.1 Organization Selection
There were various alternatives available for the interns to perform the internship. At the time of
selection of procedure of the organization for internship our college helped a lot due to which I
got the opportunity to do internship in Bank of Kathmandu Limited, New Road. My college
provided me the recommendation letter, which helped to get a chance to work as a internee in
one of the best commercial bank in the country. The New Road branch was selected because of
its prime location and nearer to my residence.
1.3.2 Placement
After selecting the organization, the intern placed the C.V. application at Bank of Kathmandu
Limited and intern was placed at New Road Branch of BOKL. During the period of internship,
the intern was placed at Customer Service Department of Bank of Kathmandu Limited.
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1.3.3 Duration
As per the prescribed curriculum of BBA, the students are required to do internship for eight
weeks. Accordingly, the internee also completed internship of eight weeks starting from 22 nd
March to 21st May, 2015 at New Road branch of Bank of Kathmandu Limited. The internee was
posted at the Customer Service Department for full eight weeks.
1.4 Limitations
Due to the time constraints and scope of the study, the study bounded under the certain
limitations which are as follows:
The internship program was limited to a period of eight weeks which is not sufficient to
gain detail knowledge of working systems of the organization.
Due to confidentiality reasons, all the data and facts of the organization was not provided.
The study is limited to data and information available and lacks overall study which may
not provide concrete results.
Only Customer Service Department could be covered in the study, so this report is not the
overall picture of the organization.
Busy schedule of the organization staff.
Validity of the report depends upon the information provided by the authorities.
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CHAPTER-II
INTRODUCTION TO THE BANKING INDUSTRY
Now a day, the World Bank refers to those institutions which are established under law for
dealing with monetary transactions. It means those institutions are treated as bank which accept
the deposit of public and grant loan to the needy person or businessmen or industrialists against
security deposit. Simply saying bank is a financial institution. It conducts general utility and
agency functions and works as medium of exchange. Any institutions offering deposit subject
withdrawal on demand and making loans of a commercial a business nature is a bank.
Definition based on deposit collection: According to World Bank, “Banks are financial
institutions that accept funds in the form of deposit repayable on demand or in short notice”.
According to U.S. Law, “any kind of institution offering deposit subject to withdrawal on
demand and making loans of a commercial or business nature is a bank “, who is always ready to
serve money on deposit to be returned against the cheque of their deposits?” It provides almost
all payment services, and a bank account is considered indispensible by all individual, businesses
and governments.
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A.D, when the “Bank of Venice” was founded. The early bankers, the Jews in Lambardy,
transected third business at benches in the market place. When they were unable to meet their
liabilities, the depositors used to break their benches and the term bankrupted was derived.
The very first banks were probably the religious temples of the ancient world where gold were
stored. Their owner justly felt that temples were the safest places to store their gold as they were
constantly attended, well built and were sacred. There are extant records of loans from the 18 th
century BC in Babylon that were made by temple priests to merchants. Ancient Greece holds
further evidence of banking. Greek temples as well as private and civic entities conducted
financial transaction such as loan, deposits, currency exchange, and validation of coinage. There
is evidence too of credit, whereby in return for a payment from a client, a money lender in one
Greek port would write a credit note for the client who could “cash” the note in another city,
saving the client the danger of carting coinage with him on his journey.
Ancient Rome perfected the administrative aspect of banking and saw greater regulation of
financial institution and financial practices. Charging interest on loans and paying interest on
deposits become more highly developed and competitive. Subsequently, bank of Barcelona 1401
and bank of Geneva 1407 were established. The “Bank of England”, first England bank, was
established in 1694 A.D. No comparison can be made between ancient and modern banks, yet
it’s necessary to know hop-the present banking system gradually developed. In ancient time,
gold smith, businessmen, and moneylender used to perform the work of banking in every
country.
Crowther observed that modern banking has three ancestors who are:
1. The merchants: The oldest ancestors of the modern banks were the merchants. These
merchants were traders in commodities. They used to exchange the gold, silver coins and
deposits. The receipt given by them was considered equivalent to money. They in those days
required remittance of money from one place to another while trading that is an important
function of a bank. It was riskier for traders to carry metallic with themselves for payment. This
give rise to the institution of “hundi” or the letter of transfer. The merchant banking thus forms
the first stage in modern banking evolution.
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2. The goldsmiths: The goldsmith’s were the second ancestors of the modern banking. The
goldsmith’s ancestry of the modern banking is purely an English affair. In England, the
goldsmiths were the original representatives of private bank. This goldsmith so called “Seths” in
India used to receive gold and silver for safe custody. They charged for safekeeping the money
consisting of gold and silver. They issue a receipt and these receipt with the passenger of time
became payable to the bearer on demand. In this way they became a medium of exchange i.e.
banker. The goldsmith thus can rightly be termed as the fore-runner of the more bank notes.
3. The money lenders: The third stage in the development of banking arose when the
goldsmiths became the money lenders. By experience the goldsmiths came to know that they
could keep a small portion of the deposits for meeting the demands of customers for cash and the
rest they could easily lend. They allow the depositors overdraft facilities. Whenever money
lender issued receipt and most of them allowed the overdraft facilities, there was then too much
confusion in the banking system. The moneylender in order to earn profits could not keep
adequate reserves for meeting the demands of the customers for cash. The failure on the part of
the money lender to return money caused widespread distress among the people.
In order to create confidence among the people, steps were taken to regulate the banking
organization. A conference was held in Nuremburg in 1548. It was decided that a bank should be
set up by the state which should streamline the banking organization and technique. The first
central bank was formed in Geneva in 1578. The 19 th century comes with the vast scope of the
development of commercial banking. It witnessed not only the phenomenal development of
modern problem enabling banks to turn their attention away from old money changing business
to many new important jobs that come in the wake of industrial progress. The 20 th century
observed the development of various banking institution highly specialized and sophisticated
particularly in advanced countries like U.S.A, U.K., and other. Today various international
organization like I.M.F, A.D.B, etc have been developed that are influencing the whole business
of the modern world. At present time bank activities have greatly increased. It does remittance of
money, Letter of credit, guarantee, issue of money, controlling and monitoring activities of
countries, pay electricity and other bills, mobile banking, master card facilities etc.
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2.3 Evolution / Development of Bank 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 which is different than rest of
other world. Even now they are in evolutionary phase. The establishment of “Kausitoshikhana”
as a banking agency during the time of king Prithivi Narayan Shah and Prime Minister Ranoddip
Malla established the government financial institution in 1993 BS and named it “Tejarath Adda”.
It provides credit loans to general public at 5% interest rate on securities i.e. gold, silver and
other ornaments. Its objective was to provide credit or loan to the general public but failed to
collect deposit from them. Loans were also provided to government employees who repaid the
loan by their salary.
During the time of Chandra Shamsher (1845-1873), credit facilities of “Tejerath “were
extended by opening its branches. Later “Tejarath” was replaced by the first commercial bank,
Nepal Bank Limited during the time of Judda Shamsher on 1934 A.D. with an authorized capital
of 10 million rupees with 51% ownership of Nepal government and 49% equity participation
from private sector, it played a significant role in attracting people towards banking sector from
predominant sahumahajan’s transaction and of introducing other banking service as well.
Because of the fast changing political environment in Nepal, people felt the need for modern
banking facilities. Nepal Bank Limited could not cope with the rapid development in the
economic environment and could not maintain the financial position.
In other to overcome such types of difficulties, government established a central bank, namely
Nepal Rastra Bank in 2012 BS. As the monetary transaction increased further and became more
complicated, government establishes another commercial bank. As a result Rastriya Banijya
Bank was established in 1966 which was the second commercial bank and that was the fully
government owned bank. In 1957AD, industrial development center was established and later it
was converted into Nepal Industrial Development Corporation in 1960 AD. After the
establishment of Rastriya Banijya Bank, Agriculture Bank was established in 1968 AD to help
the agricultural sector of the country. To operate all commercial banks uniformly single act,
“Commercial Bank Act 1975” was enacted. In 1985 AD, Nepal Government established five
rural development banks under control of NRB. In order to establish and develop other joint
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venture commercial banks and other financial institution, Nepal adopted liberal free economic
policy which result rapid entry of foreign banks. In 1985 AD, NABIL bank was established and
other banks followed.
Commercial banks have started emerging in the private sector since then. As a result now there
are 32 commercial banks operated in a country. Evolution of the information technology has
revolutionized the banking sector by saving lots of time and money. Invention of different
software and hardware, that are very essential and available for functioning bank such as banking
software, ATM, E-banking, mobile banking and card like Debit card, Credit card, Master card,
Prepaid card etc. helps the customer as well as to bank to operate and conduct their activities
more effectively and efficiently.
These banks are one of the leading financial intermediaries in the market. These banks help in
the rational and efficient allocation of funds to the productive sectors. In our country many
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depository institution are gradually established and developing as a result of the government
open declaration of financial and economic liberalization policy to move the economy to the
market forces of competition to generate efficient delivery of financial services to the people at
large.
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• Security brokerage services
• Issue of letter of credit
• Receipt of payment of certain dividend, interest etc.
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CHAPTER-III
INTRODUCTION TO BANK OF KATHMANDU LIMITED
3.1.1 Vision
To become a significant contributor to the economic development of Nepal by distinguishing the
Bank as an efficient, competitive, safe and top-quality financial institution.
3.1.2 Mission
To offer financial services and become the “Bank of Choice” by dedicating the progress and
growth of the institution to the community, customers, employees and stockholders.
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3.1.3 Objectives
Promoting economic growth and becoming a caring corporate citizen.
Providing excellent customer services by offering personalized quality services and
products.
Including modern technologies of banking that add value to customer services.
Following strict risk-control mechanisms.
Enhancing shareholders value.
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3.2.1 Deposit Products
Like any other commercial banks, BOK also accepts deposits from the customers. There are
various deposit products offered by BOK which can serve the various needs of a large group of
customers of different status. The following are the deposit products offered by BOK:
i. Current Deposits
Current deposit is a type of non-interest bearing deposit in which the customer can make any
money as deposit and withdrawal as per the demand. This scheme requires a minimum balance
of NRs 10,000 in Kathmandu Valley Branches and NRs 5,000 in Outside Valley Branches. Such
accounts are especially oriented to facilitate the business entities.
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A commercial bank performs two activities-collecting deposit and granting loans. The deposit
products have already been discussed above. The loan products of BOK are:
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This product has been structured for providing loan to women entrepreneurs for part financing
fixed and working capital need of their existing/new business venture or activities. This loan is
eligible for all women customers having a Savings Account at BOK. The bank provides loan
from NRs 50,000 to NRs 4, 00,000.
3.2.3 Services
BOK provides various services to the customers to make their financial transactions easy and
smooth. It provides a range of services such as locker facility, ATMs, mobile banking, BOK
click (internet banking), remittance, debit card facility, M-Paisa that helps the customers to gain
easy banking experience. Following are the services provided by the bank:
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minimum due will have to be paid by the cardholder within 15 days of the billed date. This card
will be valid for 2 years but annual fee is charged every year.
iv. M-Paisa
M-Paisa is an innovative mobile banking solution which is being re-launched in partnership with
Hello Paisa platform. Under M-Paisa, customers can use their mobile phones to:
Transfer money to anyone (Any telecom SIM user, Any Bank customer under Hello
Paisa platform and even those who are not registered).
Pay registered merchant for goods purchased.
Check balance of bank account/mobile account.
Pull money from bank account/Push money into bank account.
Pay for utility bills such as NTC post-paid, Landline bill and more.
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Table 3.3: SWOT Analysis
Strength Weakness
Good commitment of staff toward their Internal competition among branches.
job. Experienced employee turnover.
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The New Road branch of Bank of Kathmandu Limited is located at New Road, about 50 meters
from New Road Gate. The branch is totally focusing on customer-oriented banking product and
services. The existing departments of the New Road branch are:
b) Cash Department
Cash department performs different activities like:
i. Accept cash deposit
ii. Make payments
c) Remittance Department
This department performs all the activities related to clearing of cheques of different financial
institutions. Clearing includes inward and outward clearing of cheques. This department also
receives remittances from abroad and outside the Kathmandu valley. Similarly, it endorses the
remittances from Nepal to the Kathmandu valley. Similarly, it endorses the remittances from
Nepal to abroad in different countries in various hard currencies. This department also handles
traveler’s cheques, fax transfer, telex/swift transfer and drafts.
d) Credit Department
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Credit department is core department of any commercial banks. Interest earned from disbursed
loan is the primary source of income of any bank. Success of any bank depends on its ability to
provide loan that do not fall overdue and ultimately convert into non performing assets. The
activities performed by this department starts after the receipt of credit application from credit
and marketing department. The activities performed at this department are:
Execution of the mortgage at land registration office or registration of vehicle in bank’s
name at transportation office or pledging of stocks etc depending upon types of loan.
Disburse loan
Generate repayment schedule
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CHAPTER-IV
ACTIVITES DONE/PROBLEMS SOLVED
During internship period at BOK, intern got an opportunity to engage in the real task of bank.
The internship was a great learning experience. Many skills were learned and gained, a deep
knowledge on different aspects of customer service. The intern was provided with a full and
realistic view of workplace culture by the employees of bank, where the intern could get the
opportunity to integrate academic skills and knowledge in the practical and professional setting
that would help to cope up or deal with professional challenges. In the existence of such a good
and helpful working environment, knowledge could be gained to fullest.
This chapter mainly focuses on the major activities of customer service department done by this
internee. Based on that experience, internee could analyze the various functions of this
department. The various functions performed in internship period are explained below.
Customer service is an organization ability to supply their customer’s wants and needs. This
department acts as a bridge between the customer and the company that the customer is buying
from. Customers expect the customer service department to be helpful, friendly, and efficient. A
company's customer service department handles the concerns of customers. The department
answers customers' questions, attempts to resolve customers' complaints and tries to sell new
services to them. Most companies have a separate customer service department; although in
some cases a receptionist may function as a customer service representative. In addition to
resolving customers' complaints and answering their questions, the customer service department
also takes suggestions from customers who have new ideas that may improve the image of a
company and attract new customers.
The benefits of a customer service department are that the customers' voices are heard and that it
allows businesses to get an assessment of what they're doing right as well as what improvements
need to be made. Customer service department workers operate in different office environments
depending on the company. Some workers operate in their own separate offices, while others
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may work at the front desk. The workers spend much of their time on the phone with customers
and also perform other administrative duties.
The customer service process must be transparent. If an organization can practice full disclosure
in an obvious way in their product information and their contracts, they are on the way to create
customer loyalty. If the customer experiences your organization as one they were never surprised
and never deceived, the organization will create a competitive edge. Good customer service is all
about bringing customers back. And about sending them away happy – happy enough to pass
positive feedback about the business along to others, who may then try the product or service the
bank offer for themselves and in their turn become repeat customers.CSD front desk is front
office operation i.e. direct interaction with customers.
The Customer Service Department of Bank of Kathmandu Limited, especially New Road
Branch, performs the following activities and provides the following services to its customers:
Bank Accounts can be opened by both an individual(s, in case of Joint A/c) as well as a
corporate firm (institution). Basically a bank account is a unique computer-generated customer
code that allows customers to deposit and withdraw fund. The Account Opening Procedure is
explained as follows:
At first, on the visit of the customer in the bank, the customer is asked to fill an account
opening form and Signature Card which contains the personal details of the customers.
The CSD staff them verifies all the documents, details and signature and feeds them into
the FINACLE along with the specific a/c type, introducer’s name (if any).
Then the customer are requested to deposit the minimum balance (or more) of the
concerned deposit type in their a/c. and account number is provided later on.
CSD staff will create the customer id of account holders and then forward to operation
manager to verify.
Once the customer id is verified, operation manager again returned it to CSD for form
scanning.
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After form scanning, the CSD staff will prepare the ATM card and cheque on customer
request.
Obtain citizenship
Obtain photos of customers
Mark all copy documents as original seen
Fill customer details form (account opening form)
Open account into the computer system
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Documents required for opening current accounts
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ii) Account Closing Procedure
An Account is closed only upon receiving a written request from the customer/a/c holder. At
first, the a/c holder fills up the “Account Closing Request” form and submits it to CSD. The
customer has to return ATM card and cheque which are unused to the bank. The bank charges
certain amount for closing the account and returned all the remaining balance to the customer.
After the completion of filling up the form, it is verified and signature by operation manager and
branch manager. Thus, finally customer account is closed.
During my internship I learnt that Bank of Kathmandu takes special caution in disclosing the
balance in any account, which I found very impressive. Customers often come to CSD for
balance enquiry but it is only entertained after establishing the identity of the a/c holder by
checking the photo or signature in the system. Telephonic balance enquiries are not entertained
as far as possible. Only to some highly regular customers whom the staffs know very well, are
given the privilege of Balance Enquiry via phone.
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v) Statement Printing Procedure
A Statement of Account is a statement that shows a detailed list of the transactions (withdrawals
and deposits/debits and credits) as well as the closing balance of the a/c as of the one day before
the statement printing. The Statement of Account is provided on customer request and statement
request form has to be filled up for statement print. Account holder must be present for statement
print. In case if account holder is not present, the agent must have the application of statement
printing request signed by the account holder.
As a CSD staff during my internship, all my time was spent in handling the numerous queries of
various walk-in customers. I gave the information that they wanted. Many customers were
interested to learn about that product, which I happily obliged. In addition to that, I answered
queries about our other products, services, transaction hours etc. I handled the customer queries
via phone as well.
KYC update is the recent activity that is carried out in all the commercial bank as instructed by
Nepal Rastra Bank. So as per the instruction, I distributed and helped the customer to fill up the
KYC form at Bank of Kathmandu Limited, New Road Branch. For KYC update, we were told to
inform the customer who visit the bank and who doesn’t often visit the bank they were informed
through telephone calls.
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4.2 Problem Identified and Solved
During my eight-week internship, I also got the opportunity to understand, identify and solve
some of the problems faced by the bank. Here are some problems and difficulties that exist in the
CSD of the bank:
The CSD at New Road branch is understaffed. Too much responsibility lies on the
single person who faces a lot of problems during high traffic hours at the bank.
There was lack of adequate follow ups with the customer regarding matters such as
informing them to collect their ATMs. Cheque Books, etc.
There is a frequent technical problem in the ATM machines which has led to multiple
ATM complaints.
There is no strict description of job and responsibilities. For e.g. a staff at remittance
department may have to move to customer service department and perform the related
task as per the requirement.
There is no photocopy machine in the CSD of New Road branch. To photocopy the
documents, one has to go to the credit department room upstairs.
After analyzing the problems I tried my best to solve some of them to my best of abilities. In
addition to those, here are the possible solutions to those problems which could not be solved
from my level.
The CSD at New Road branch needs to recruit additional staff to handle the workload
of the department. I have brought this matter to the attention of the Branch Manager
who has assured me to do something about it soon.
I also took the initiative to take the frequent ATM complaints to the Branch Manager,
and as a result of which, he contacted the IT department at the Head office and has
solved the problem.
Establish a separate photocopy machine in customer service department so as to save
time and energy.
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CHAPTER-V
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
From the above analysis it is seemed that BOK is one of most hard working commercial bank
that is dedicated in serving their valued customers with excellence. During this internship period
of 8 weeks, Intern had learnt a lot about the banking activities and banking operation in the
Nepalese market, about BOK in particular. This report has made intern know about the various
kinds of the customer services that BOK has been offering. The internship has been fruitful in
many ways to intern.
Internship has broadened intern’s knowledge, vision, ability, management skill and confidence to
perform in real working environment. It was a great chance to gain practical knowledge of
banking sector. The practical cases are rather different from that we study in theory. Further
intern has also become versed to get socialize with the diversified people, to deal with the senior
staffs, and to deal with the intern colleague so as to make the working environment cheerful,
pleasant and friendlier. Beside this, the supervisors were extremely helpful in guiding on our
internship program.
It was the great experience working as an intern in EBL. The operational environment was
benevolent. There was good communication, healthy competition and healthy relationship in
between the personnel of EBL. Each and every staff of EBL were totally professional but still
there was a family environment making overall internal working environment delightful to work
with. Working at EBL as an intern was a great opportunity to develop conceptual and analytical
knowledge about banking sector in Nepal. Thus, the knowledge and experience endowed with
this study will surely be constructive towards the pavement of intern’s career and professional
life.
During my internship what I also analyzed is that the bank is good in providing a good customer
service. Customers always seek quality service at their convenience. Many customers have
preferred Bank of Kathmandu mainly due to its brand image, branch facilities and service
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quality. They expect this bank to rise even more to become the leading bank in service quality.
Mostly the customers of Bank of Kathmandu are satisfied with what they are receiving but there
are also some issues regarding interest rate on deposits and also other factors or room for
improvement for the bank in order to excel even more and be a top banking industry in years to
come. Improvements have to be made from time to time in order to sustain the satisfaction level
of customers and push the bank to a continuous growing path.
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Learn the procedures of home loan and vehicle loan along with the amount of share
financed by the bank during the “Ghar Jagga Mela”. i.e. 80% of amount is financed by
bank if a customer’s construct the house and 60% of amount is financed if a customer is
buying a house or flat.
The intern has also acquired the knowledge to the technology like photocopy, scanner,
print, etc.
The intern got an opportunity to learn different banking product which is offered by bank.
The intern learnt to prepare various documents as well as to check these documents
properly.
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