A CUSTOMER SERVICE ACTIVITIES

OF
AGRICULTURE DEVELOPMENT BANK LIMITED

AN INTERNSHIP REPORT

Submitted by:
Yubata Kumari Chaulagain
BBS, 4th Year
TU Registration No.:7-2-0233-0033-2013
Exam Roll No.:2330021
Final Project MGT401

Submitted to:
Faculty of Management
Tribhuvan University
Kathmandu, Nepal

In partial fulfilment of the requirements for the

Bachelor of Business Studies (BBS)

April, 2017
 DECLARATION
I hereby declare that the project work entitled "CUSTOMER SERVICE ACTIVITIES OF
AGRICULTURE DEVELOPMENT BANK LIMITED" Submitted to the faculty of
management, Tribhuvan University, Kathmandu is an original peace of work under
the supervision of Mr. Krishna Prasad Adhikari, faculty member, Sindhuli Multiple
Campus, Dhungrebash, Sindhuli and is submitted in partial fulfilment of the
requirements for the award of the degree of Bachelor of Business studies (BBS). This
project work report has not been submitted to any other university or institution for
the award of any degree or diploma.

Signature
Yubata Kumari Chaulagain
Date:-

i
 Appendix C: Supervisor's Recommendation

The project work report entitled CUSTOMER SERVICE ACETIVITIES OF ADBL by

Yubata Kumari Chaulagain of Sindhuli Multiple Campus of Sindhuli, is prepared

under my supervision as per the procedure and format requirements laid by the
faculty of Management, Tribhuvan University, as partial fulfilment of the
requirements for the award of the degree of Bachelor of Business studies (BBS). I,
therefore recommend the project work report for evaluation.

Signature:
Lecturer: Jibi Thapa
Sindhuli Multiple campus, Dhungrebash
Sindhuli
Date:

ii
 (In a Campus/College Letter Head)

We hereby endorse the project work report entitled CUSTOMER SERVICE

ACETIVITIES OF ADBL by Yubata Kumari Chaulagain of Sindhuli Multiple Campus of
Sindhuli in partial fulfilment of the requirements for award for award of the Bachelor
of Business studies (BBS) for external evaluation.

signature: signature:
Department Head: Name of Chaief/principle: Durga Prasad
Adhikari
Dipak Raj Baral Sindhuli Multiple Campus, Sindhuli
Supervisor: Date:
Krishna Prasad Adhikari
Lecturer:
Jibi Thapa
Management Research Committee
Date:

iii
 ACKNOWLEDGEMENTS

It has been a wonderful experience to be a part of Agriculture Development Bank

Limited as an intern. This internship report is the result of continuous effort and
cooperation extended by the bank employees including managerial as well as non
managerial staffs. During internship, the intern got opportunity to meet the top
personalities of the banking sector and got to know the real situation of the banking
industry.
Intern is indebted to ADBL, Sindhuli, and Branch Manager Damodar Prasad Dahal,
who permitted for internship. Intern would like to thank all the ADBL Sindhuli Team
for their proper guidance, suggestions and encouragement for directing intern to the
right track despite of his busy schedule. Intern expresses gratitude towards them for
their kind co-operation and support during the internship period despite of rush of
work.
Intern owes gratitude to Program Director Krishna Prasad Adhikari for his guidelines
and suggestions which was important to make this report meaningful.

Sincerely,
Yubata Kumari Chaulagain
Sindhuli Multiple Campus
Dhungrebash, Sindhuli
Nepal

iv
 TABLE OF CONTENT
DECLARATION........................................................................................................................
APPENDIX C: SUPERVISOR'S RECOMMENDATION.......................................................
IN A CAMPUS/COLLEGE LETTER HEAD ii
i
ACKNOWLEDGEMENTS.....................................................................................................iv
TABLE OF CONTENT............................................................................................................v
LIST OF TABLES..................................................................................................................vii
1 INTRODUCTION............................................................................................................1
1.1 Background of the study..............................................................................................

1.2 Statement of the

Problems.........................................................................................1
1.3 Objectives of the study................................................................................................

1.4 Importance of the study....................................................................................................

1.5 Limitation of the study................................................................................................

1.6 Methodology................................................................................................................

1.6.1 Organizational Selection...................................................................................3

1.6.2 Placement and Duration of Internship...............................................................3
1.6.3 Activities done in different departments of ADBL............................................4
2 INTRODUCTION OF INDUSTRY.................................................................................6
2.1 Introduction.................................................................................................................

2.2 Origin of Bank.............................................................................................................

2.3 History of Bank...........................................................................................................

2.4 History of Bank in Nepal.............................................................................................

2.5 Types of bank..............................................................................................................

v
 2.5.1 Retail Bank.......................................................................................................8
2.5.2 Commercial Bank.............................................................................................8
2.5.3 Investment Bank...............................................................................................9
2.5.4 Central Bank.....................................................................................................9
2.5.5 Credit Unions....................................................................................................9
2.5.6 Online Banking...............................................................................................10
2.6 List of Commercial Bank in Nepal............................................................................

2.7 Present Financial Position of Nepal..........................................................................

3 INTRODUCTION TO THE ORGANISATION.............................................................13

3.1 Corporate profile.......................................................................................................

3.2 Board of directors......................................................................................................

3.3 Corporate Vision & Mission......................................................................................

3.4 Corporate Conduct.....................................................................................................

3.5 Products of ADBL.....................................................................................................

3.5.1 Deposit............................................................................................................17
3.5.2 Loans..............................................................................................................17
3.5.3 Remittance......................................................................................................18
3.6 Interest rates for ADBL.............................................................................................

4 ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED..............................19

4.1 Activities done during internship..............................................................................

4.1.1 Customer Service Department.........................................................................19

4.1.1.1 Activities Performed in
CSD ...........................................................................20
4.1.1.2 Brief Explanation of Activities
done ...............................................................20
4.2 Problems Solved........................................................................................................

4.3 Observed gap.............................................................................................................

5 Conclusion and Lesson Learnt........................................................................................25

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

5.2 Lesson Learnt............................................................................................................

REFERENCES.......................................................................................................................viii

vi
vii
 LIST OF TABLES

Table 1: Placement and Duration of Internship.........................................................................

Table 2: Present Scenario of Financial Sector.........................................................................
Table 3: Board of Directors of ADBL...................................................................................
Table 4: Interest Rates for ADBL............................................................................................

viii
 ABBREVIATIONS
ABBS ANY BRANCH BANKING SYSTEM

ADBL AGRICULTURE DEVELOPMENT BANK LIMITED

ADBN AGRICULTURE DEVELOPMENT BANK NEPAL

ATM AUTOMATED TELLER MACHINE

BAFIO BANK AND FINANCIAL INSTITUTION ORDINANCE

BBS BACHELOR IN BUSINESS STUDIES

BOD BOARD OF DIRECTORS

CSD CUSTOMER SERVICE DEPARTMENT

CTI CENTRAL TRAINING INSTITUTE

ECC ELECTRONIC CHEQUE CLEARANCE

MICR MAGNETIC INK CHARACTER RECOGNITION

NBL NEPAL BANK LIMITED

NCP NET CLEARING POSITION

RTCS REGIONAL TRAINING CENTRES

RBB RASTRIYA BANIJYA BANK

SFDP SMALL FARMER DEVELOPMENT PROGRAM

TU TRIBHUVAN UNIVERSITY

ix
 CHAPTER ONE

1 INTRODUCTION
1.1 Background of the study

A healthy financial system is essential for the healthy 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, efficiently
allocating resources, helping diversify risk and facilitating the exchange of goods and
services.

Internship program was great platform for an internee to experiment all acquired skills
from the provided curriculum. The professional goal of an internee was to develop
personal decision making skill in dynamic work environment, to enhance level of
understanding about banking institution and the corporate world.

The main focus of this report is to let the reader know about the different service
provided at the bank. This project studies on the banking activities of ADBL. The
financial services provided by ADBL for satisfying its customers are deposit
collection and lending operation. Besides, services related to guarantee and fund
transfer through draft, fax, inward bill collection, outward bill collection are also
provided to clients.
1.2 Statement of the problem

In the banking institution there are many problems that arise from the external factors
such as political, legal, economics, social, infrastructure quality of work life etc.

The following will be the statement of the problems during the course of the study.

i. The customers were unable to read and write. There need to gives advices
to the customers.

1
 ii. There were problems to read the cheque because the customers sign were
incorrect and gives idea how to sign correctly.
iii. The cheque need to be filled by myself because of lack of knowledge.
iv. Some customers ask that how much balance is remain in my account in
that case i gave their advice and tell them the remaining balance.
v. The customers don't know the system of ADBL Bank. The account would
be blocked if the customers don't use the account before six months ago. In
that case the account will blocked and there were problems to deposit and
credits other in that case i tell them the rules of ADBL Bank.

1.3 Objectives of the study

 To know about the various products and services provided to customers for
satisfying their needs.
 To be experienced on working environment of different departments.
 To be familiar with the banking practices, rules, regulation and functions of
the bank in Nepal.

1.4 Importance of the study.

In this modern time giving facilities to the customers is a most important aspect of
ADBL Bank. The bank should provide various service and opportunities to the
customers in order to joint in ADBL Bank and get much financial service.

If the ADBL Bank provides various types of service, ideas and information about the
bank after that the customers will be conscious and there may be easy way to
communicate with them. Study of the customer service of ADBL Bank provides the
actual rules of bank and deposit and credits system of ADBL Bank. After that they
can make mind how to use the account periodically.
The main purpose/important of the study of customers services that is provided by
ADBL Bank is to inform way to use it and the information and facility provided by
the ADBL Bank to the Customers.

2
1.5 Limitation of the study.
The limitation of the study of customers service provided by ADBL Bank included
the boundary or circumstance of study. It's main limitation is the problems of
customers and ways to solve them systematically.

The following will be the limitation during the course of the study.
The research has been conducted on the requirement of partial fulfilment of BBS final
year program.
This study only focuses for customer service and way not be applied for others bases.
If gives only the information of customers of ADBL Bank.

1.6Methodology
1.6.1 Organizational Selection
Having specialization in Finance, the best option to choose was the banking sector
where the intern could implement the theoretical knowledge into practical one. The
choice became agriculture development bank limited due to its nature of business,
reputation, the co-operative culture of staff members, etc. ADBL is the reputed
commercial bank with leading performance having the slogan of bank’s development
for poverty alleviation’. Hence, rural finance is the principal operation area of ADBL.

1.6.2 Placement and Duration of Internship

Regarding placement, the intern was placed in the CSD where learning and
familiarizing the new environment and the activities going on within the organization
was possible. And, for a few days, the intern was also placed in the Remittance
Department. This report is completely focused on customer service department.

DEPARTMENT WEEKS
1 2 st nd
3rd
4th 5th 6th 7th 8th
CUSTOMER SERVICE     
DEPARTMENT
REMITTANCE   

3
 Table 1: Placement and Duration of Internship

 =WORKING WEEKS

1.6.3 Activities done in different departments of ADBL

Internship is a great way to test career possibilities. By participating in an internship

program, intern gain hands-on experience and enhance the knowledge of career field.
Intern job was to assist in administrative activities assign by internship coordinator.
There were several activities done in different departments of ADBL. Some of the
activities regulated by ADBL daily are:

a) Remittance:
The fund can be transferred from one place to another, both domestic and
international. This facility is used to import/export trade. The payment and receipt
in Nepalese and foreign currency can be performed.
b) Customer Service Department (CSD):
The activities performed in the CSD are listed below:
 Customer counselling.
 Opening and closing accounts.
 Printing account statements.
 Printing and issuing cheque books and maintaining records of issued cheque
books.
 Informing customers about the maturity of fixed deposit.
 Informing customers about the arrival of ATM cards.
 Issuing ATM cards after verification and maintaining records.
 Scanning signatures.
 Handling phone calls photocopy, filing records.
c) Any Branch Banking Service (ABBS):
This facility enables customers of ADBL to deposit or withdraw money acquire
any information from any branch of ADBL.
d) Electronic Cheque Clearance (ECC):
Activities performed in clearing section are:

4
 Cheque receipt from customer with the deposit slip.
 Verifying the cheque.
 Entry of the outward cheques.
 Placing the stag and send for approval.
 Print out record of all clearing cheques done on that day.
e) Loan Department:
Bank provides loans to different sector such as loan to company/firm, personal
loan, hire purchase loan etc. It advances credit against cash pledge, pledge of
shares, personal guarantee, corporate guarantee, gold and silver by following the
direction of Nepal Rastrya Bank.
f) Locker Facility:
ADBL provides locker for its customer at Dudhpati. The advantages for having
locker are that the bank is open 365 days a year with safe environment, strategic
location and choices of locker sizes.

5
6
 CHAPTER TWO

2 INTRODUCTION OF INDUSTRY
2.1 Introduction

Bank is an institution whose debts (bank deposits) are widely accepted in settlement
of other peoples, debt to each other. A bank is an institution, which deals with money
and credit. A bank is an institute involved in monetary transactions. An institution,
which will play a role of intermediary, which will, collect money and the collected
money, will be invested to their specialized sectors or countries. Bank is an institution
which must be established as legally organized institution by common people for
saving their money and get guarantee to buy security.

A bank is an organisation which principals operations are concerned with the

accumulation of the temporarily idle money of the general public for the purpose of
advancing to other for expenditure. Banks provide almost all payment services, and a
bank account is concerned indispensable by most businesses individuals and
governments. Non-banks that provide payment services such as remittance companies
are not normally considered an adequate substitute for having a bank account.
Ordinary banking business consists of changing cash for bank deposits and bank
deposits for cash; transferring bank deposits from one person or corporation to
another; giving bank deposits in exchange for bills of exchange, government bonds,
the secured or unsecured promises of repay.

2.2 Origin of Bank

‘Bancs’ in Latin, ‘Banca’ in Italian and ‘Banque’ in French connote to the word bank,
meaning bench. It was that bench from where the money lenders used to accept
deposits and make payments of valuables and coins in the street of European
countries earlier. The traditional form of banking could be traced during the
civilization of Greek, Rome and Mesopotamia. The ancestors of modern banking
were goldsmiths, merchants and money lenders (NRB 1995).

7
2.3 History of Bank

The modern banking originated in medieval Italy. The first modern bank is ‘the bank
of Venice’ established in Venice in 1157 AD. Gradually other banks like bank of
Barcelona (1401 AD), bank of Genoa (1407 AD), bank of Amsterdam (1609 AD) and
the bank of Hindustan (1770 AD) came into existence.

The bank of England was established in 1694 ad. With the introduction of banking act
in 1833 AD in the United Kingdom, the growth of bank accelerated. (This act allowed
the bank to be established as a joint stock company).

2.4 History of Bank in Nepal

In context of Nepal, goldsmith, merchants, and money lenders were the ancient
bankers of Nepal. Tejarath Adda established during the tenure of Prime Minister
Ranoddip Sing (1993 B.S) was the first step towards the institutional development of
banking in Nepal. Later ‘Tejarath’ was replaced by the first commercial bank, Nepal
bank limited during the time of Juddha Shamser in 1937 B.S.

However, the trend of modern banking started in Nepal with the inception of Nepal
bank limited on 1994 BS. Similarly, Rastrya Banijya Bank was established in 2022
BS as a fully government owned commercial bank. It was established with the view
that integrated and speedy development of the country was possible only when
competitive banking service reaches nooks and corners of the country.

Until the mid 1980’s, Nepal’s financial sector was closed foreign banks and was
effectively controlled by state owned Banks Rastriya Banijya Bank (RBB) and Nepal
Bank Limited (NBL). In 1984 ad policies was liberalized and banking industry was
opened to private sector. After 1984 AD there was rapid entry of the joint venture
commercial banks in the Nepalese financial market.

8
2.5 Types of bank
2.5.1 Retail Bank

A retail bank is a bank that works with consumers, otherwise known as 'retail
customers'. Retail banks provide basic banking services to the general public,
including:

 Checking and savings accounts

 Safe deposit boxes
 Mortgages and second mortgages
 Auto loans
 Unsecured and revolving loans such as credit cards

Retail banks are the banks you most often see in cities on crowded intersections, the
ones you probably use for your personal checking account. In addition to helping
consumers, retail banks often serve businesses as well - so they can also serve as
commercial banks.

2.5.2 Commercial Bank

Commercial Bank is a bank that works with businesses. Commercial banks handle
banking needs for large and small businesses, including:

 Basic accounts such as savings and checking

 Lending money for real and capital purchases
 lines of credit
 Letters of credit
 lockbox services
 Payment and transaction processing
 Foreign exchange

Commercial banks often function as retail banks as well, serving individuals along
with businesses. Businesses have unique needs that consumers don’t have.

9
 2.5.3 Investment Bank

Investment banks help organizations use investment markets. For example, when a
company wants to raise money by issuing stocks or bonds, an investment bank helps
them through the process. Investment banks also consult on mergers and acquisitions,
among other things.

Investment banks primarily work in the investment markets and do not take customer
deposits. However, some large investment banks also serve as commercial banks or
retail banks.

2.5.4 Central Bank

A central bank is an organization responsible for managing banking activity. Within

the USA the central bank is the Federal Reserve, or 'the fed'. Other countries have
central banks as well. Their roles are similar, but they may have different objectives.

In the US, the central bank has three primary goals:

 Conduct monetary policy

 Supervise and regulate financial firms
 Provide financial services

Most consumers do not interact with the central bank. Instead, large financial firms
generally work with the central bank in the background.

2.5.5 Credit Unions

A credit union is an institution owned by the “members” or customers. Contrast this

with banks where the customers are just customers. Banks answer to profitability–
usually shareholders own a bank and expect financial performance from bank
management.

10
Credit unions are non-profit organizations that strive for service over profitability.
Note that this does not mean they are charities. Credit unions must make sound
financial decisions, collect revenue, pay salaries, and compete with other institutions.

2.5.6 Online Banking

Online banks are banks that you primarily (or exclusively) use on the internet. Online
banks allow you to have more choice and flexibility. You can do things on a computer,
and you often get more competitive rates from online banks. They claim that they do
not have the overhead and expenses associated with brick-and-mortar banks, so they
can pass the savings on to you.

Online banks allow you to do everything online, including:

 Open accounts
 Fund accounts
 Transfer money between accounts
 Use online bill pay services
 Buy CD’s
 Get loans
 Access overdraft lines of credit

You can also access your cash in the real world with a debit card.

2.6 List of Commercial Bank in Nepal

(As of 21 April 2017)

1. Siddhartha Bank Limited 

2. Nepal Bank Limited 
3. Rastriya Banijya Bank Limited 
4. Agriculture Development Bank Limited 
5. Nabil Bank Limited 
6. Nepal Investment Bank Limited 

11
7. Standard Chartered Bank Nepal Limited 
8. Himalayan Bank Limited 
9. Nepal SBI Bank 
10.Nepal Bangladesh Bank Limited 
11.Everest Bank Limited 
12.Bank Of Kathmandu Lumbini Limited 
13.Nepal Credit And Commerce Bank Limited 
14.Kumari Bank Limited 
15.Laxmi Bank Limited 
16.Global IME Bank Limited 
17.Citizens Bank International Limited 
18.Prime Commercial Bank Limited 
19.Sunrise Bank Limited 
20.NMB Bank Nepal Limited 
21.NIC Asia Bank Limited 
22.Machhapuchchhre Bank Limited 
23.Mega Bank Nepal Limited 
24.Civil Bank Limited 
25.Century Bank Limited 
26.Sanima Bank Limited 
27.Janata Bank Nepal Limited 
28.Prabhu Bank Limited 

12
2.7 Present Financial Position of Nepal

There has been tremendous growth in banking transaction in terms of their length and
breadth than a few years ago. Nepalese banks are now providing better banking
services and many facilities, which have made customers’ life easier and safer.
Banking these days provide a strong security, more options and convenience. Besides
the government banks there has been emergence of many other commercial banks.
Private and joint venture banks are successful in the present context. They are able to
provide qualitative facilities to the customers.

Commercial banks are now permitted to set their own deposit and lending rates
maintaining the minimum spread and also cash margin in issuing letter of credit of
imports. Due to the result of financial utilization process, a number of activities are
open in the bank including mutual funds, money market, portfolio management, etc.
competition among the banks has become more keen and tough with the increase in
number of commercial joint venture banks, which are providing better services.

Hence, the commercial banks are trying to differentiate themselves by providing

prompt services like no deposits/ withdrawal limits, credit cards, competitive rate on
foreign exchange, ATM cards, etc. and attractive schemes like insurance schemes, etc.
which is extra bonus to the customers that motivates them to deposit their surplus in
one of these banks. The success of these commercial joint ventures lies on their
efficiency, competitiveness and sustainability in the autonomous financial sector of
Nepal.

Present scenario of Financial Sector

S.NO. Organization No. of institutions
1. Central Bank 1
2. Commercial Banks 28
3. Development Banks 54
4. Finance Companies 38
5. Micro Credit Development Banks (Class D) 45
6. Employee Provident Fund 1
7. Citizen Investment Trust 1

13
 8. Nepal Stock Exchange 1

Table 2: Present Scenario of Financial Sector

These financial institutions and banking institutions are able to provide the complete
banking facility to Nepalese people. However, proper banking facilities are yet to be
developed in the rural areas. Thus, there is enough room for the expansion and
creation of new financial institutions in Nepal.

CHAPTER THREE

3 INTRODUCTION TO THE ORGANISATION

3.1Corporate profile
With the main objective of providing institutional credit for enhancing the production
and productivity of the agricultural sector in the country, the Agricultural
Development Bank Nepal was established in 1968 under the ADBN act 1967, as
successor to the cooperative bank. The land reform savings corporation was merged
with ADBN in 1973. Subsequent amendments to the act empowered the bank to
extend credit to small farmers under group liability and expand the scope of financing
to promote cottage industries. The amendments also permitted the bank to engage in
commercial banking activities for the mobilization of domestic resources.
Agricultural development bank limited (ADBL) is an autonomous organization
largely owned by government of Nepal. The bank has been working as a premier rural
credit institution since the last three decades, contributing a more than 67 percent of
institutional credit supply in the country. Hence, rural finance is the principal
operational area of ADBL. Besides, it has also been executing small farmer
development program (SFDP), the major poverty alleviation program launched in the
country. Furthermore, the bank has also been involved in commercial banking
operations since 1984.
The enactment of bank and financial institution ordinance (BAFIO) in February 2004
abolished all acts related to financial institutions including the ADBN act, 1967. In
line with the BAFIO, ADBL has been incorporated as a public limited company on

14
July 14, 2005. Thus, ADBL operates as a "a" category financial institution under the
legal framework of BAFIO and the company act, 2053.

3.2Board of directors
The board of directors is the apex body of the bank. It formulates policies as well as
strategies and provides guidance to the management. The board comprises a total of
nine members; four members representing government of Nepal and four members
representing individual shareholders. Besides, one member is nominated by the board
as per the BAFIA. The board is supported by audit committee and governance sub-
committee in the area of internal control and good governance respectively.
The day to day operation of the bank is executed by the chief executive officer. The
chief executive officer is closely assisted by four deputy general managers and 18
division chiefs. Moreover, chief executive officer is supported by assets and liabilities
management sub-committee for various activities related to risk management.
The bank has three-tier organisation structure consisting of head office, regional
offices and field offices. Field offices are further categorised into three levels; main
branch, branch and sub-branch depending particularly upon their volume of business.
The head office is the policy making body at the top, field offices are implementing
units at the bottom and ROS with monitoring and supervisory role are in between.
ADBL is also operating a central training institute (CTI) at corporate level in bode,
BHAKTAPUR under head office structure and five regional training centres (RTCS)
with residential facilities in five development regions. The CTI and RTCS conduct
training and seminars particularly for enhancing abilities and skills of organizational
members.

Mr. Pramod Kumar Karki

Chairman Nayabaneshwor, Kathmandu

Tel: 01-4471259 (Res.) 01-248752 (Off.)

Mr. Shisir Kumar Dhungana

Member

15
 Joint Secretary, Ministry of Finance

Tel: 01-4211748 (Off.)

Mr. Yogendra Kumar Karki
Member
Joint Secretary, Ministry of Agriculture
Dr. Chandra Bahadur Adhikari

Member Chandragiri, Kathmandu

Tel: 01-4262620(Off.) 01-4316066 (Res.)

Ms. Laxmi Devi Manandhar

Member Samakhusi, Kathmandu

Tel: 01-4353768 (Res.)

Mr Ramesh Kumar Mahat

Member Samakhusi-29, Kathmandu

Tel: 01-4353297 (Res.)

Mr. Manoj Basnet

Member Battisputali, Kathmandu

Tel: 01-4110176 (Res.)

Mr. Govind Prasad Bhattarai

Member Anamnagar, Kathmandu

Tel: 01-4232178 (Res.)

Mr. Ghanshyam Awasthi

Member

16
 Tikathali, Lalitpur

Tel: 01-5007209 (Res.)

Table 3: Board of Directors of ADBL

3.3 Corporate Vision & Mission

VISION
To be a mass-based complete bank serving from urban to rural.
MISSION
To deliver comprehensive banking solution strengthening its extensive network.
OBJECTIVE
To provide quality banking services,
To adopt market driven strategy,
To obtain sustained and competitive return on investment.

3.4 Corporate Conduct

In achieving its corporate objective in pursuit of its corporate mission and vision,
ADBL will:
 Comply with all relevant legislation, codes of conduct and standards of good
corporate citizenship in NEPAL while maintaining full autonomy in the
management of its operations;
 Conduct its operations in an open and transparent manner;
 Put local resources to work for local development, serving the rural community
and its aspirations;
 Provide a full and balanced rage of financial products and services that satisfies
the needs of the rural population of NEPAL, on a profitable and sustainable
basis;
 Strive consistently to provide improved products and services to its clients at
reasonable cost, using modern banking, information and communication
technology in the most appropriate form to its clients needs;

17
 Be vigorous in building reputation for professionalism, competitive pricing,
reliability and quality of service and innovation;
 Operate in accordance with best banking practice, acting with financial prudence
and keeping in mind the need to balance profitability with asset preservation and
liquidity and to safeguard depositor's funds;
 Work together with its employees to develop their capabilities to contribute to
achievement of the bank's objectives, promoting excellence, rewarding
achievement and providing them the opportunity to share in the bank's success;
 Develop mutually acceptable relationship with government in the pursuit of
improvement in living standards in rural areas, while respecting best financial
practices;
 Ensure that its activities contribute to the environmental stability and overall
improvement of living standards in NEPAL; and
 Judge the bank's success against the measures that include profitability, portfolio
quality in terms of minimal arrears and non-performing loans, portfolio worth,
total deposits, geographic outreach and public image.

3.5 Products of ADBL

3.5.1 Deposit

 Current account
 Saving account
 Fixed deposit account
 Sambridhi saving account
 Ba-ama saving account
 Fixed deposit lakhapati account

3.5.2 Loans

 Auto loan
 Education loan
 Foreign employment loan
 Home loan

18
  Residential loan
 Agricultural production loan
 Livestock loan
 Small & cottage industry loan
 Products & inputs marketing loan

3.5.3 Remittance

 Inward remittance
 Outward remittance

3.6 Interest rates for ADBL

INTREST RATE 2073/10/01

Table 4: Interest Rates for ADBL

19
 CHAPTER FOUR

4 ANALYSIS OF ACTIVITIES DONE AND PROBLEM SOLVED

4.1 Activities done during internship
During internship, activities have been performed in different departments such as
CSD and Clearing Department. Most of the time of internship was spend at the CSD
and a few days at Clearing Department. It has helped the intern to gain sufficient
knowledge regarding various activities performed in the CSD and Clearing
Department, and the problems faced by these departments.

This report is based on Customer Service Department so it focuses on various

activities performed in the department and the problems faced by this department in
its day-to-day operations.

4.1.1 Customer Service Department

Customer Service is the provision of service to the customers before, during, and after
a purchase. It is a series of activities designed to enhance the level of customer
satisfaction, i.e. the feeling that a product or service has met the customer expectation.

A customer is a person who has a contract with the bank for any transaction that the
bank is authorized to handle, he may or may not account with the bank. It may be
noted that even a single transaction may constitute a customer but the dealing must be
of a banking nature as against that of a casual nature.

CSD is the most important department of any bank. It deals with various services
offered by the bank. So it is also called the gateway to any organization because it is
the place where a client can get the answer to almost all queries regarding the function
and services of any organization. This department links all other departments with
each other.

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CSD interacts with its customers directly, so if the bank is successful to create good
impression and satisfy the customers with its services, it directly benefits the bank.
Customer Service believes in the proverb “First impression is the Last impression”.

4.1.1.1 Activities performed in CSD

The various activities performed while working in the CSD are mentioned below:
1. Dealing with customers
2. Account opening
3. Account closing
4. Printing and issuing cheque books
5. Distribution of different vouchers, forms, etc.
6. Issuing account statements
7. Informing the customers about maturity of fixed deposits
8. Informing the customers about the arrival of ATM cards
9. Issuing ATM cards after verification
10. Record keeping
11. Filling forms, vouchers, etc.
12. Photocopying, handling phone calls, filing of forms, applications, etc.

4.1.1.2 Brief explanation of activities done

1. Dealing with customers

Intern is supposed to deal with different types of customers who enter the bank
and provide general information related to various services offered by the bank
such as account opening, debit card, remittance, banking hours, etc.
2. Account opening
Intern has been involved in opening various accounts like saving a/c, current a/c,
call a/c, FDs, etc. in accordance with the need of the customers and also, helping
the customers in filling up the account opening forms.

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3. Account Closing
Account will be closed in accordance to the request of the customer. On receipt
of request for the closure of a/c, the staff in the CSD will check the a/c balance
and then will be approved by the Branch Manager himself.
4. Printing and issuing cheque books
After collecting the request for the cheque book, cheques are printed. The
request for today’s cheque will be made available for next day, but in case of
emergency, consideration is made. After preparing the cheque books, they will
be issued to the respective customers by verifying the signature at the requisition
slip with that at the time of issue.
5. Distribution of different vouchers, forms, etc.
CSD provides different forms to the customers such as a/c opening form, a/c
closing form, ATM acknowledgement form, statement request form, etc.
6. Issuing account statements
Statements are essential to have full proof of amount deposited or withdrawn.
Thus, a/c statements are provided to the customers as per their request.
7. Informing customers about maturity of fixed deposits
At the CSD, the intern was also responsible for informing the customers about
the maturity of their fixed deposits.
8. Informing customers about arrival of ATM cards
The intern was also responsible for informing the customers about the arrival of
their ATM cards.
9. Issuing ATM cards after verification
Issuing ATM cards is also done in the CSD. The cards are issued to the
respective customers after verification at their arrival.
10. Record keeping
Record keeping is another important function performed at the CSD. Record of
different things done in the CSD are maintained, like- a/c opening, a/c closing,
issued cheque books, damaged cheque leaves, issued ATM cards, different
applications for SMS and e-banking.

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11. Filling forms, vouchers, etc.
Some customers are unable to fill up their form during opening account,
receiving remittance money, etc. CSD helps these customers by filling up the
form for them by getting the required information, and similar is in the case of
filling vouchers.
12. Photocopying, handling phone calls, filing of forms, applications,
etc.
Clerical works are the most important day-to-day activities performed by the
CSD. CSD handles phone calls of different customers and staffs from different
branches and transfers the phone calls to the respective department as per the
customer need and staff demand. It responds to the queries of the customers
giving appropriate solutions to their problems. It also involves photocopying of
documents like citizenship certificate, license, ID cards, etc. CSD is also
responsible for filing of different forms and applications like statement request
form, cheque requisition slip, ATM acknowledgement forms, SMS banking, e-
banking application, etc.

4.2 Problems Solved

Although ADBL is able to meet the changing needs of the customers, some
problems have been analysed and possible measures have been taken to minimize
the problems and solved them while working in CSD. Following are some of the
problems faced while working during the internship:
a. Communication problem
Most of the customers still have minimum education qualification; they don’t
have proper knowledge regarding the terminologies used in different forms,
vouchers, etc. as they are printed in English language.
To solve this problem, as an intern, they were made clearly understood about the
terminologies used by translating in simple and understandable language, which
could help them in filling up the form correctly and in a short period of time.
b. Grievances handling

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 It is the most important problem among the other problems. By grievance we
mean a cause for complaints. If it is not handled properly, it directly affects the
bank’s image; as a result customers are dissatisfied.
Grievances are the problem associated with bank faced by customers during the
transaction period with the bank.
To solve this problem, CSD can play the important role, as this department is in
direct interaction with the customers. If the problem is critical, it should be
forwarded to the top level management for solution.
c. Unsystematic handling
Unsystematic management leads to failure. Unsystematic handling of things is
also a problem. Though the problem isn’t so big, if not handled properly and
timely managed, it directly affects the efficiency of banking activities.
To manage this problem, things should be managed in a systematic way, so that
they are readily available whenever required.
d. Hesitation of customers
It is one of the problems faced by most of the banks. It is difficult to identify
since it is related with psychological aspect of the customers. Some customers
hesitate to convey their problems to the related staff. The bank cannot read the
mind of each customer who visits the bank.
To solve this problem, initiation can be taken to ask customers regarding their
problems frequently and create a friendly environment.
e. Work load problem
It is another problem faced by the bank. At the time of opening and closing work
load is high. So, sometimes it is difficult to provide immediate services to the
customer which leads to customer dissatisfaction.
To solve this problem, increasing the number of working hands can be
beneficial. At the same time, if customers are provided with various facilities
like e-banking, SMS banking, this problem can be minimized to some extent.

4.3 Observed gap

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 The internship provides the practical knowledge of the real world whereas; BBA
provides theoretical knowledge which is quite different from practical skills.
Therefore, the observed gap is the difference between the theoretical knowledge and
practical skills.

The observed gaps during internship are as follows:

 The intern observed that the different theories learnt cannot be solely applied in
concerned fields.
 The intern was placed in the CSD and Remittance Department; hence the intern
could not get closer to the managerial aspect of the bank, though BBA aims to
develop middle level management.

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 CHAPTER FIVE

5 Conclusion and Lesson Learnt

5.1 Conclusion
Bank is a financial institution that deals with monetary transactions. The main
function of bank is accepting deposits and advancing loans. It is one of the economic
regulators in the country that provide the opportunity for the people and the
government to utilize the available money and improve the economic condition of the
country and each individual.
Bank operates its business within the society and cannot be isolated. It has certain
duties towards the society. Therefore, ADBL is providing space to the farmers, small
scale industries, micro enterprise, and students from different area and has been doing
tremendous job as a part of institutional relationship.

5.2 Lesson Learnt

During the internship program, different types of opportunities were grabbed. The
work that was done in the real time was very fruitful. The different lessons learnt
during internship are listed as follows:
i. Gained practical knowledge and learnt to cope up with the working
environment.
ii. Gained knowledge about the practical functioning of the banking sector.
iii. Understood the nature of organizational problems in practical life and applied
concepts, knowledge and skill gained through theoretical knowledge.
iv. Learnt different techniques to deal with the customers at different situations.
v. The procedures and different documents required for opening different
accounts.
vi. Different deposit schemes of the bank.
vii. Social exposure.
viii. Gained real world experience and developed professional competencies.
ix. Improved communication skills, interpersonal skills and problem solving skills.
x. Learnt new computer application networking.

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Working as an intern mainly provided the opportunity to learn about the practical
implication of the theoretical knowledge which will definitely help in career building

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 REFERENCES
Agricultural Development Bank Limited. (2017). Adbl.gov.np. Retrieved 21 April 2017, from
http://www.adbl.gov.np/corporate_vision_mission.html

Agricultural Development Bank Limited. (2017). Adbl.gov.np. Retrieved 20 April 2017, from
http://www.adbl.gov.np/index.html

Agricultural Development Bank Limited. (2017). Adbl.gov.np. Retrieved 22 April 2017, from
http://www.adbl.gov.np/adbl_interest_rate-434.html

Agricultural Development Bank Limited. (2017). Adbl.gov.np. Retrieved 21 April 2017, from

http://www.adbl.gov.np/adbl_board_of_director.html

Bank. (2017). En.wikipedia.org. Retrieved 21 April 2017, from

https://en.wikipedia.org/wiki/Bank

List of banks in Nepal. (2017). En.wikipedia.org. Retrieved 21 April 2017, from

https://en.wikipedia.org/wiki/List_of_banks_in_Nepal

Annual Magazine of ADBL “Banking Samachar” 2015 & 2016

Shrestha, M.K. & Bhandari, D.B (2009) Financial Markets and Institutions.

Asmita Publication, Nepal

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