Internship Report of

Nepal Investment Bank Limited

Submitted to Nepal College of Management

Dhobighat, Lalitpur

Submitted by:
Shreeya Poudyal
SSID Number: A18082
KU Regd No: A025771-18

In partial fulfillment of the requirement for the degree of

Bachelor of Business Administration (BBA)

31st May, 2022

Declaration
I, Shreeya Poudyal, hereby declare that this report entitled ‘’An
Internship Report on Nepal Investment Bank Limited’’ is prepared
uniquely after the completion of seven weeks of internship program
with Nepal Investment Bank Limited.

I further confirm that this report is the result of my own research and
work, and that it has not been submitted to any other university or
institution for the purpose of receiving a degree.

…………………………
Shreeya Poudyal
 Acknowledgement

The internship opportunity I had with Nepal Investment Bank Limited (Head
office) was a great chance for learning and professional development. I am also
thankful for having a chance to meet so many delightful people and professionals
who led me through this internship period.
From the bottom of my heart, I would like to thank Nepal Investment Bank
Limited for allowing me to carry out my internship at their highly esteemed
organization. I would also like to thank Kathmandu University and Nepal College
of Management for providing me internship opportunity in the banking sector.
Last but not the least, I would also like to thank all the concerned people, my
supervisors, family members and colleagues for their precious time, valuable
suggestion and their countless help during my internship period. I perceive this
opportunity as a big milestone in my career development. I will strive to use the
skills and knowledge in the best possible way which I gained by working in this
bank.
Certificate
 Abbreviation

NIBL: Nepal Investment Bank Limited

CSD: Customer Service Department
GSD: General Service Department
GRN: Goods Receipt Note
PO: Purchase Order
KYC: Know Your Customer
ATM: Automated Teller Machine
CEO: Chief Executive Officer
NSF: Non- Sufficient Funds
 Executive Summary
This report is about my internship program with Nepal Investment Bank Limited.
In this comprehensive report, I have discussed about every major aspect of the
bank, which I observed and perceived during my internship period.
In this report you will find the detail about bank right from its incorporation to the
current position. Along with it, the processes, policies and procedure of the bank
is discussed in detail. During my internship program, I was placed in seven
departments. So, these departments have been discussed in detail and all the
policies and procedures have been described thoroughly.
As the main purpose of internship is to learn by working in practical environment
and to apply the knowledge acquired during these studies in a real world scenario
in order to tackle the problem using knowledge and skill learned during academic
process. This internship report covers many important aspects which are basically
related with operations and financial aspects of the bank. In the end the learning
and experience section consists of all the policies, processes, practices and
procedures which I have undergone through and learned during my internship
program.
Contents
Introduction..............................................................................................................8
1.1. Overview of the Organization......................................................................8
1.2. Brief History..................................................................................................9
1.3. Nature of the Organization........................................................................10
1.4. Business Volume........................................................................................10
1.5. Organizational Structure............................................................................11
1.6. Objectives of the Internship......................................................................11
2) The Components of Internship Report and their Purposes:.............................12
2.1. Summary.....................................................................................................12
2.2. Nature and Sources of Data Collection.....................................................16
2.3. Significance of the study............................................................................16
2.4. Limitation of the study...............................................................................17
3) Developing the Report.....................................................................................17
3.1. Financing Strategy/ Marketing Strategy...................................................17
Financing Strategies:............................................................................................17
Marketing Strategies...........................................................................................18
3.2. Investment/ Product Selling/ Advertisement...........................................18
4) Report format...................................................................................................19
4.1. Significance of Internship...........................................................................19
4.2. Main Text....................................................................................................19
4.3. Recommendation and Suggestions...........................................................20
4.4. References and Appendices.......................................................................21
Introduction
1.1. Overview of the Organization:
Nepal Investment Bank Ltd. (NIBL), previously Nepal
Indosuez Bank Ltd., was established in 1986 as a joint venture between Nepalese
and French partners. The French partner (holding 50% of the capital of NIBL) was
Credit Agricole Indosuez, a subsidiary of one of the largest banking groups in the
world. Later in 2002, a group of Nepalese companies comprising of bankers,
professionals, industrialists and businessmen acquired the 50% shareholding of
Credit Agricole Indosuez in Nepal Indosuez Bank Ltd., and accordingly the name of
the Bank also changed to Nepal Investment Bank Ltd. At present, the Bank's
shareholding pattern is as follows: Promoters - 69% and General Public - 31%.
With our team of experienced bankers and professionals with proven track
record, we, at NIBL believe in offering the best of what our customers look for.
NIBL started its banking services from Magh 6, 2042 after
registration in the company act, 2021 and Nepal Banijya bank act 2031. The
French partner (holding 50% of the capital of NIBL) was Credit Agricole Indosuez,
a subsidiary of one the largest banking group in the world. With the decision of
Credit Agricole Indosuez to divest, a group of companies comprising of bankers,
professionals, industrialists and businessmen, had acquired on April 2002 the 50%
shareholding of Credit Agricole Indosuez in Nepal Indosuez Bank Ltd. Concepts
such as all branch banking, 24-hour banking and transactions through ATMS have
revolutionized the banking practices in Nepal. Professionalism is reflected by the
fact that the Banker of London-based Financial Times Group has awarded NIBL
with “THE BANK OF THE YEAR 2003”. Besides, NIBL won the same award in the
year 2005 and 2008 as well. NIBL was selected for this honor amongst the Nepali
banks for meeting the benchmark criteria set by The Banker. The prestigious
award is the first occasion that a 100% Nepali managed bank has won.
Vision and Mission of the Company:
Vision: "To be the most preferred provider of Financial Services in Nepal"

Mission: To be the leading Nepali bank, delivering world class service

through the blending of state-of-the-art technology and visionary management in
partnership with competent and committed staff, to achieve sound financial
health with sustainable value addition to all our stakeholders. We are committed
to do this mission while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance.

1.2. Brief History:

Bank can be defined as the financial intermediary between depositors
and entrepreneurs. The intermediation takes place when banks accept deposits
from the general public, corporate bodies, and private organizations and deploys
those deposits for profitable purpose in the form of loans and advances. Bank is
financial service institution, therefore in between this intermediation, the bank
gets some earning. The transactions in the financial market heavily depend upon
the banking system of the country.
As a public enterprise banking made its forced beginning around the middle of
the 12th century in Italy and the Bank of Venice founded in 1157 was the first
public banking institution. Following it were the bank of Barcelona and the Bank
of Genoa in 1401 and 1407 respectively. The latter two continued to operate until
the 18th century. With the expansion of commercial activities in northern Europe,
there sprang up a number of private banking houses in Europe. And slowly it
spread throughout the world.
Nepal being a developing country, its banking history is not so long. According to
historical records, Our King Mandev and Gunakamdev established Manank and
Ginak mudra respectively. Gunakdev borrowed money to rebuild Kathmandu in
723 AD. A merchant named Sankhadhar paid all the debts of people and
established Nepal Sambat for the remembrance of that occasion in 80 AD.
Likewise, Jaysthiti Malla classified the people in four classes and 36 castes by their
occupation. One of those castes who were involved in money lending business at
that time named as Tanka-Dhari during the prime minister ship of Rannodip
Singh. Likewise, Tejarath Adda was established as the first financial institution of
the country. In the beginning, only government staffs were allowed to take loans
at 5 % interest rates and later on public were also allowed to take the loan at the
same interest rate against the gold and silver securities. Taksar Bivag was also
established since 1989.
  Our oldest bank is Nepal Bank Ltd. established in 1994 BS. 30th Kartik. After that,
so many banks were established. Nepal Rastra Bank was established in the year
2012 BS as a central bank of the country. Rastriya Banijya Bank, another
commercial bank was established in 2022 BS. Only after 2041 B.S, Nepal
government allowed joint venture banks to operate in the country. At present,
the banking sector is more liberalized and there are various types of the bank
working in the modern banking system. This includes central, commercial, and
development banks.

1.3. Nature of the Organization:

Commercial banks are an organization which normally performs certain
financial transactions. It performs the twin task of accepting deposits from
members of the public and make advances to needy and worthy people from
society. When banks accept deposits, its liabilities increase and it becomes a
debtor, but when it makes advances its assets increases and it becomes a
creditor. Banking transactions are socially and legally approved. It is responsible
for maintaining the deposits of its account holders.
1.4. Business Volume:

RS (in billion)
4
3.5
3
2.5
2
1.5
1
0.5
0
2072/73 2073/74 2074/75 2075/76 2076/77

Figure 1: profit after tax (source:

https://www.nibl.com.np/about-us/investor-relation/annual-reports
The above figure shows us the earnings of NIBL from the year 2072/73 to
2076/77. We can see that total profit of the bank was maximum in the fiscal year
2074/75 as compared to2072/73 and 2073/74. It was able to earn around more
that Rs. 3.6 billion (after tax) for that fiscal year whereas, the profit has slightly
decreased for the year 2075/76. And in the year 2076/77, bank was not able to
earn higher profit and the graph also indicates that in that year, the bank earned
the lowest profit as compared to other years.

1.5. Organizational Structure:

Organizational structure is the specified path through which the formal
command of authority and responsibility flows. It determines how the roles,
power and accountabilities are assigned, controlled, and coordinated, and how
information flows between the different levels of management. A structure is
determined by the organization’s objectives and strategy.
NIBL, at present has chain of command for its functioning. The organization
structure of NIBL consists of Chairman at the topmost position followed by CED
who is directly accountable to the Chairman. There are three Deputy General
Managers in NIBL holding the responsibility of Corporate Banking, Retail Banking
and IT, Card, Remittance and Product Development Department. They delegate
responsibility to Assistant General Managers who are also three in number at
different branches of NIBL.AGM again delegate authority to Department Heads
and the hierarchy follows to branch manager to officers to assistants. The
organizational chart is shown at the Appendix 1.

1.6. Objectives of the Internship:

It is noteworthy to have commercial banks in developing
countries as lending financial institution to guide the economy. This report is
basically focused to analyze the present situation of NIBL and its contributions in
the economic development of our country. Before starting my internship, I had
set certain objectives which are as follows:
i) To understand the practical implication of academic knowledge.
ii) To try out own abilities and heighten our skills.
 iii) To get exposure to professional career.
iv) To understand banking culture and how banking organization operates.
v) To understand customer’s perspective, competitive environment and
organization standing in the banking scenario.
vi) To fulfill the partial requirement of the BBA eighth semester of Faculty
of Management, Kathmandu University.

2) The Components of Internship Report and their Purposes:

2.1. Summary:
During the period of seven weeks at NIBL, I was given the opportunity
to be placed in Customer Service Department, Cash Department, Foreign
Exchange Department, Locker Department, Credit Department, Accounts
Department and General Service Department. Altogether I was placed in seven
departments. The activities done in these departments can be explained below:
I. Customer Service Department: CSD serves as the important department of
any organization. The ultimate goal of any organization is to satisfy the
customers. The image and reputation of the bank depends upon the way
how the staffs in this department behave with clients. So, the ultimate goal
of the organization can be achieved through efficient functioning in CSD. I
was placed for one week in CSD. During that period, I was given the chance
to perform the following activities:
i) Disseminating information related to various banking products and services
that are available to satisfy needs of customers.
ii) Distribution of ATM Cards and calling customers to update their “KYC”
forms.
iii) Handling telephone calls and documentation of files.
iv) Photocopying all the necessary documents (citizenship card, voter id,
passport) as per their requirement and verifying them with the original one.
v) Maintaining the record of total number of the cheque requisition issued by
the customers and preparing the cheque book.
 vi) Manage the various forms and vouchers such as different new account
opening forms, closing forms, scheme change forms etc.
vii). Helping customers to fill the forms properly such as a/c opening form, e-
banking form, ATM renew forms etc.

II. Foreign Exchange Department:

Foreign exchange department is responsible for exchanging foreign
currency i.e., buying and selling foreign currency. Buying rate is differing from
selling rate. Selling rate is slightly higher than buying rate. Selling of Foreign
Currency Selling foreign currency means providing foreign currency for Nepalese
currency. Customers should require different documents for exchanging foreign
currency with Nepalese currency. But Indian currency can be exchanged without
any criteria. For other currency following documents are required: • Airway ticket
for the respective country along with the visa of the country whose currency is to
be exchanged • Photocopy of passport.
Buying foreign currency means providing Nepalese currency for foreign currency.
Bank only buy the foreign currency from those who were already visited to the
respective country. Without that bank will be unable to exchange foreign
currency. Following documents are to be submitted by the customers for enabling
the bank to buy foreign currency from them:
 Return airway ticket from respective country.
 Photocopy of passport.
Bank does not charge any commission for exchanging foreign currency. The gap
between selling and buying is the benefit for the bank. During my internship
period, I found foreign exchange department very crowd. Travelers Cheque NIBL
offers "American Express Traveler's Cheque" that is accepted worldwide.
III. Cash department:
When customer wants to deposit money or with drawl amount, he/she go
to cash department. The job of cashier is very sensitive, it demands extra care. In
cash department, I learned how to make payments of cheques, accept deposit
slips and collection of utility bills, collection of school/colleges/universities fees.
The bank collects utility bills and fees during banking hours. Bills and fees can be
paid through cash or cheques.

IV. Credit Department:

Loan administration department, also called credit department basically
deals with the corporate loan. But also provide individual loan. The success of this
department keeps a great influence over the profit of a bank. Failure of this
department may lead the bank to huge loss or even bankruptcy. Hence, the bank
places the extreme emphasis on its credit function. This department provides
different types of credit facilities as per the requirement of the customers (i.e.,
the individual or corporate bodies). Management of all the credit facilities issued
to customers is the major responsibility of this department which finds ways to
attract new customers and retain the existing ones ensuring minimum risk of
default customers.
During my one- week time in this department, I performed the following tasks.
Prepared the documents required for the processing of the loan, prepared
checklist of original and other required documents while providing loans, checked
loan documents, helped customers in the documentation, reviewed documents of
clients who had been enjoying credit facility of the bank and who were going to
enjoy it, filled missing information of the client in the document, searched
information of the client which was required in CIC report related to a particular
client, informed the customers if their guarantee had been expired, filed and
photocopied necessary documents, and read and understood Credit Procedure
Policy Guidelines.
V. Locker Department:
Locker service offered by the banks gives customers a completely
secured facility for safekeeping of his/her valuable items, confidential documents
and other valuables against from any unfortunate events. Locker department of
NIBL was not only responsible for providing the locker facility but, the department
was also responsible for providing loan against gold for the customers. During my
one week in this department, I learned the process of lending loan against gold. I
got to know that the rate at which the value of gold is determined by the bank is
different from that of the market rate. NIBL provides 60% of loan against the gold
value. During my one-week period, I found this department much crowded as
NIBL was the only bank providing gold loan at that time and the process for gold
loan is less hectic and less time consuming compared to other types of loan. I also
came to know that the locker facility of NIBL is opened 365 days a year. The bank
provides different size of locker to the customers. Here my job was to keep the
record of customers, who wants to open their locker. Then deal with the
customer and help them with their locker.
VI. General Service Department:
GSD supports all of the internal operations of the bank, like purchasing
tools, stationary and other supportive materials. It also performs executive level
administrative and supervisory work directing the Building Maintenance,
Engineering and also maintains and replacement plan in consultation with
management and department users then provides information to all the staffs.
They provide all the required material to all the branch of the bank. First the
budget is given by the BOD for all the branch, then branch send the list of items
they want after that GSD deal with the vendors and give out the order. They also
verify all the item send by the vendor and store the item. Then as per the
requirement they distribute the item and all the steps are recorded and books are
maintained.
My job was to maintain PO and GRN. Then enter them in the logbook. PO is an
order sheet, as the order is given through the document. It is prepaid before the
order of the item and one copy is kept by the GSD, one copy is kept by the
Account Department and one copy is given to the vendor. According to the PO
vendor send the items. GRN is prepaid after we receipt the goods. It is the record
that we have receipt the goods. It includes the price of the good, invoice number
and invoice date, bill number.
VII. Accounts Department:
The accounting department is responsible for recording and reporting
the cash flow transactions of a company. This department includes accounts
receivable, accounts payable, payroll, financial reporting, and maintaining
financial controls. This department has the control over the finance of the bank.
In Account Department my job was to collect the bills and then tally the bills and
report to my department supervisor. All the bills are paid through the account
payee cheques, which can only deposit in the account holder account. Account
Payee Cheques are given so that there will be check and balance plus it is safer
and reduces confusion as the wrong person cannot withdraw from that cheque.

2.2. Nature and Sources of Data Collection:

The term refers to the way of the collection of data and information. There are
the different source of collection of data and information. They are the primary
source and secondary source. Here, both of these sources are used to make the
report authentic.
Primary Source:
 Direct personal interview with the related staffs
 Asked many questions to the staffs of the related department and acquired
lots of information from them.
 Observation of activities performed.
Secondary source:
 Visited the site of NIBL.
 The articles, publications and journals related to NIBL in different
magazines and daily newspapers.
 Old files and records available in NIBL.
 Credit Procedure Policy Guidelines of NIBL.
 The brochures and the annual report of NIBL.

2.3. Significance of the study:

Any internship report is a necessary part of the BBA program’s requirement
because when academic and practical knowledge are integrated, knowledge and
learning become even more powerful. Students can network and make contacts
through internship programs. Through internship programs, students get an idea
of job markets in certain way. Having an internship experience in a bank helps
students gain knowledge regarding overall operations and functions of the
banking sector.
 2.4. Limitation of the study:
Despite most of the efforts undertaken to make the project more realistic,
practicable in terms of Nepalese context, there are certain limitations of the
study:
•    The subject matter itself is vast and the internship period is just seven weeks.
So, time allocated for the internship is not sufficient to gain banking operation in
depth and all the department were not possible to be covered.
•    Intern was not allowed to use the system, like Finacle.
•    It was not possible to gather the information regarding the system more
specifically due to organizations privacy policy.
•    Most of the information is collected through personal experience and
observation; the overall information may not be presented.

3) Developing the Report:

3.1. Financing Strategy/ Marketing Strategy:
Financing Strategies: Commercial banks provide basic banking services
and products to the general public, both individual consumers and
small to mid-sized businesses. 
Banks make money from service charges and fees. These fees vary
based on the products, ranging from account fees (monthly
maintenance charges, minimum balance fees, overdraft fees, NSF
charges), locker facility fees, and late fees. Many loan products also
contain fees in addition to interest charges.
Banks also earn money from interest they earn by lending out money to
other clients. The funds they lend comes from customer deposits.
However, the interest rate paid by the bank on the money they borrow
is less than the rate charged on the money they lend . 
Some of the financial strategies used by NIBL are:
 Develop products and services that reduce our cost of funds.
 Maintain a high-quality asset portfolio to achieve strong and
sustainable returns and to continuously build shareholders’ value.
 Explore new avenues for growth and profitability
 Marketing Strategies: Strategy helps in developing goods and services
with best profit- making potential. Marketing strategy helps in
discovering the areas affected by organizational growth and thereby
helps in creating an organizational plan to cater to the customer needs .
Some of the marketing strategies used by NIBL are:
 Customer-oriented service culture with special emphasis on
customer care and convenience.
 Increase our market share by following a disciplined growth
strategy.
 Leverage our technology platform and pen scalable systems to
achieve cost-effective operations, efficient MIS, improved delivery
capability and high service standards.
 Develop innovative products and services that attracts our
targeted customers and market segments.

3.2. Investment/ Product Selling/ Advertisement:

Products of NIBL:
Broadly speaking there are two types of products of a normal
commercial bank. They are deposits and credit. Under these two categories, NIBL
also provides various kinds of products. The different types of deposits offered by
the banks are: savings account, fixed deposit account and current account. Under
savings account, they offer Normal savings account, social deposit account, E-Zee
saving account, Aafnai bachat khata, Keta Keti bachat khata, saving bonanza,
Lotus saving, E-Zee student account and Parivar bachat khata.
The various loan provided by NIBL are: Home loan, Vehicle loan, Tenure,
Education loan, Loan against gold.

Services of NIBL:
Like every other commercial bank, NIBL do provide services keeping the
customer’s needs and wants in mind. These are the existing services provided by
NIBL:
 365 Days Banking
 E-banking   
 Any Branch Banking Service (ABBS)
 Tele Banking Services
 ATM
 Statement request
 Cheque pad request
 Remittance
 Trade finance
 Utility payment
 Lockers

4) Report format:
4.1. Significance of Internship:
The duration of internship lasted for seven weeks and during the
course of the internship there were various lessons that I was able to learn.
 This internship was a great opportunity for intern to face real-life work
scenarios after three years in the classroom and I must say that it was a
great learning experience for me.
 I learned the significance of time management and communication skills
and implemented them in routine work.
 I got to know about the importance of inter-personal communication skills
in professional life.

4.2. Main Text:

Objective of this internship was to learn and gain an experience
in real work environment. As I was assigned in different departments, I
learned about various banking activities in different department. The
lessons that we learnt from this are as follows:
 Learned about the functions and importance of different
departments in the bank. They are co- related and how one
department cannot work smoothly if another is not working
properly.
  Learned about the bills receipt by the bank and how they pay out
they bills.
 Learned how banks make their purchase and maintain their PO and
GRN.
 Learned to Deal with the customers and help them with their
queries.
 Learned about the process of account opening and account closing.
 Learned about the process of issuing cheque book, bank transaction
statement, process of issuing new and expired or lost ATM Card or
Debit Card
 Learned about the Function of Loan Department and different types
of loan schemes provided the bank and the various documents
required for several of those types.
 Learned about the Credit Facility Appraisal
 Learned about the loan disbursement process.
 Learned about the policies of the bank.

4.3. Recommendation and Suggestions:

NIBL has customized its services according to the needs and
wants of the customers. However, NIBL’s service charges are more as compared
to other commercial banks. Majority of the customers are satisfied with the
services provided by NIBL. The major reason behind it was cooperative and
responsive staff.
There are few recommendations to the bank which will help them to further
increase their service and get desired position in the market. Bank should be
competent enough to compete with other commercial banks. Bank should be able
to make people aware of its services. The limited number of employees is also the
problem in the bank even though they are handling the task. In this modern age,
bank should be quick enough to adopt new technology in comparison to its rivals.
Interns should be fully guided by staffs in performing the routine activities of THE
bank.

4.4. References and Appendices:

Appendix 1: Organisational Structure of NIBL

References:
http://internshipreportpresentaion.blogspot.com/2015/11/internship-
report-on-nepal-investment.html
https://www.nibl.com.np/about-us/overview/overview
https://www.academia.edu/13298566/
Internship_report_on_Nepal_Investment_Bank_Limited
https://www.nibl.com.np/about-us/investor-relation/annual-reports
https://e-research.siam.edu/wp-content/uploads/2019/10/BBA-2017-
COOP-Overall-Banking-System-compressed.pdf
https://www.managementstudyguide.com/marketing-strategy.htm