AN INTERNSHIP REPORT ON

CUSTOMER SERVICE DEPARTMENT OF

NEPAL BANK LIMITED, BUDHABARE BRANCH

Submitted by

Sneha Poudel

TU Registration No: 7-2-0002-0229-2017

Examination Roll No: 19222/17

An internship report

Submitted to

Faculty of Management

Tribhuvan University

In partial fulfillments of the requirements for the degree of

Bachelor of Business Administration

Mechi Multiple Campus

Bhadrapur, Jhapa

August, 2022
 Student’s Declaration

This is to certify that I have completed the Internship Project entitled, “An

Internship Report on Customer Service Department of Nepal Bank Limited,

Budhabare Branch” under the guidance of Mr. Rajesh Subedi in partial fulfillment

of the requirement for the degree of Bachelor of Business Administration at Faculty

of Management, Tribhuvan University. This is my original work and I have not

submitted it elsewhere.

Name: Sneha Poudel

Date: August, 2022

ii
Certificate from the Organization

iii
 Certificate from the Supervisor

This is to certify that the Internship Project Report entitle, “An Internship Report on

Customer Service Department of Nepal Bank Limited, Budhabare Branch” is an

academic work carried out by Sneha Poudel submitted in the partial fulfillment of the

requirement for the degree of Bachelor of Business Administration(BBA) at Faculty

of Management, Tribhuvan University under my guidance and supervision. To the

best of my knowledge, the information presented by her in the internship report has

not been submitted earlier.

Name: Mr. Rajesh Subedi

Designation: Lecturer

Date: August, 2022

iv
 Certificate from BBA Department

We hereby endorse the project work report entitled “An Internship Report on

Customer Service Department of Nepal Bank Limited, Budhabare Branch” submitted

by Sneha Poudel of Mechi Multiple Campus, Bhadrapur, in the partial fulfillment of

the requirements for award of the Bachelor of Business Administration (BBA) for

external evaluation.

Harish Luintel Netra Prasad Nepal

Deputy Director Director

v
 Acknowledgement

The internship report entitled" An Internship Report on Customer Service Department

of Nepal Bank Limited, Budhabare Branch” is prepared in the partial fulfillment of

the requirement for Bachelors of Business Administration degree of Tribhuvan

University. There is an effort, help, guidance and supervision of several people for the

completion of this report. Without the proper guidance provided by them the

completion of the report wouldn't have been possible, so I would like to extend my

sincere gratitude to all those who have contributed directly and indirectly to complete

this report.

I am grateful to my supervisor Mr. Rajesh Subedi for his continuous support,

guidance and supervision in each and every step of my work here. Further, I would

like to gratify towards the director, deputy director and all the lecturers of BBA

department of Mechi Multiple Campus for providing the opportunity to experience

the actual work environment of the organization.

With warm regards I would like to thank Mr.Biman Khadka, the Branch Manager of

NBL Budhabare branch for guiding and helping me throughout the period of

internship. I would also like to thank Ms. Tikamaya Nepal head of CSD, Mr. Suman

Nepal, Mr. Sandesh Tumbapo, Ms. Subhani Jha,Mr. Paresh Acharya, Mr, Loknath

Kattel and all the staffs of NBL Budhabare branch for their continuous support and

help that they have provided me. The 8 weeks long internship period at NBL

Budhabare branch has helped me in understanding the procedure and banking

technologies. I perceive this as a great opportunity as a milestone in career

development and will use gained skill and knowledge in best possible ways.

Sneha Poudel

vi
 Table of Content

Student’s Declaration………………………………………………………………….ii

Certificate from the Organization…………………………………………………….iii

Certificate from the Supervisor……………………………………………………….iv

Table of Content……………………………………………………………………...vii

List of Tables………………………………………………………………………..ix

List of Figures………………………………………………………………………..x

List of

Abbreviation…………………………………………………………………...xi

Chapter 1: Introduction……………………………………………………………...1

1.1 Background of the Study......................................................................................1

1.2 Objectives of the Study........................................................................................2

1.3 Methodology........................................................................................................2

1.4 Limitations of the Study.......................................................................................5

Chapter 2: Introduction to the Industry……………………………………………6

2.1 Introduction to Bank............................................................................................6

2.2 Industrial Analysis...............................................................................................8

Chapter 3: Introduction to the Organization……………………………………..11

3.1 Introduction of Nepal Bank Limited..................................................................11

3.2 Capital Structure.................................................................................................13

3.3 Products Offered by Nepal Bank Limited..........................................................14

vii
 3.4 Organizational Structure....................................................................................16

3.5 Departmental Functions.....................................................................................18

3.6 SWOT Analysis.................................................................................................19

Chapter 4: Analysis of Activities Done and Problems Solved……………………22

4.1 Activities Done...................................................................................................22

4.3 Problems Identified and Solved.........................................................................27

4.4 Possible Solutions..............................................................................................27

4.4 Observed Gap.....................................................................................................28

Chapter 5: Conclusion, Lesson Learnt and Recommendation…………………..29

5.1 Conclusion..........................................................................................................29

5.2 Lesson Learnt.....................................................................................................30

5.3 Recommendation................................................................................................31

References……………………………………………………………………………...

viii
 List of Tables

Table 1 Corporate Strategy..........................................................................................13

Table 2 Composition of BOD of NBL........................................................................18

ix
 List of Figures

Figure 1 Showing organizational structure of NBL...................................................17

Figure 2 Organizational structure of NBL Budhabare……………...………………16

x
 List of Abbreviation

ABBS Any Branch Banking Services

ATM Automated Teller Machine

BOD Board of Directors

CSD Customer Service Department

CEO Chief Executive Officer

E-Banking Electronic Banking

FOM Faculty of Management

KYC Know Your Customer

NBL Nepal Bank Limited

NRB Nepal Rastra Bank

POS Point of Sale

QR code Quick Response code

SMS Short Message Service

xi
 1

Chapter 1: Introduction

1.1 Background of the Study

Bachelor of Business Administration (BBA) is a management program under

Faculty of Management (FOM) of Tribhuwan University. The program was

introduced by TU in 2002 AD with the prime motto of educating students for

professional pursuits in business, industry and government. The scope of BBA has

grown as an important academic discipline with practical dimension. It has grown

according to needs of the institutions with growth of financial sectors in particular and

other professional organizations in general.

The mission of FOM's Bachelor in Business Administration (BBA) program is

to develop socially responsive, creative and result oriented management professionals

to fill up the middle level managerial positions in the rapidly growing business sector

in Nepal and abroad. This program is introduced in a way so as to reduce the gap

between theoretical and practical knowledge provided to the students. It is a four year

program designed with eight semesters as a complete package of BBA eligibility and

tries to cover the operations and transactions of the practical business world with

particular focus on Nepalese context.

With the view to develop student's skill in object oriented business

management, capable of understanding and solving real life business related

problems, students are required to work in any organization for eight weeks in their

final semester (Eight Semester). Internship program helps students to experience real

work life problems, teaches about how to handle and solve those problems. Abdul

Karim and Chong (2012) defined internship as a chance for students to incorporate

their on-the job work experience and knowledge into their university education by

being in a supervised and planned real-world professional work environment. It

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generally involves student working in a professionals setting under the supervision

and monitoring of practicing professionals that enhance the knowledge, skill and

theoretical practices of the students.

The report here describes about Customer Service Department (CSD) of Nepal

Bank Limited, Budhabare branch. The project report here is basically focused on the

services provided, tasks and other general activities, which are done at the Customer

Service Department (CSD).

1.2 Objectives of the Study

Every action is directed towards accomplishing certain objectives. The

objectives are the smaller versions of what we would like to achieve as our overall

goal. Setting objectives helps to understand and analyze how our actions need to be

directed. It basically helps to answer the question how to achieve our larger target.

Internship program is in itself a new learning pedagogy which provides the floor for

the practical exposure of theoretical knowledge; however, the specific objectives of

this report are:

i. To develop the ability to handle real work life pressures, customers and

learn to deal with them.

ii. To enhance the communication, interpersonal skills and public relation

skill through direct interaction with the customers.

iii. To learn about the working procedure of Customer Service Department of

NBL.

1.3 Methodology

Completion of internship is a combination of the different types of activities. It

starts from the selection of the organization for the internship, performance of

different kinds of activities and placement in different parts of the organization and at
 3

last collection of various primary and secondary data for the preparation of the report.

In terms of data collection both primary as well as secondary source had been used. In

case of primary source, observation and personal interview with the staffs are used

and in case of secondary source, the brochures, published reports and documents,

website of the bank and other related websites had been used. Following

methodologies are used to study the organization.

Organization Selection. Internship program helps students to experience real

work life problems, teaches about how to handle and solve those problems. For the

fulfillment of research objectives selection of proper organization is very necessary.

Internship from a reputed financial institution helps to build career by creating linkage

between classroom knowledge and practical work life experiences. Keeping all these

factors and convenient reach from residence Nepal Bank Limited, Budhabare branch

was selected for carrying out internship for eight weeks. For the internship in Nepal

Bank Limited the recommendation letter of the college, CV and others necessary

documents are dropped. After that bank accepted intern application and gave an

opportunity to get familiar with the bank.

Placement. Mostly the interns are allowed to work in the Customer Service

Department of the banks. Keeping the rule in order, I started by internship journey

from CSD. In CSD we could meet various customers who visit bank with various

types of queries, complaints and for several other purpose. Some of them simply

come to open bank account, demat account, some come to close their bank account,

some visit bank to pay their interest, some come to receive pension fund, some come

for receiving ATM cards, some of the customers have problems with mobile banking

operations and some of them visit to withdraw money. I was placed in CSD for eight

weeks because of my good communication skills and behavior with customers.

 4

Duration of Internship. The duration for internship has been defined as two

months that is eight weeks by the Tribhuwan University, Faculty of Management.

Keeping the duration in consideration, internship was carried out for eight weeks

starting from March 29, 2022 to June 29, 2022 (eight weeks) under the supervision

and guidance of Mrs. Tikamaya Nepal (CSD in charge) and Mr. Biman Khadka

(Branch Manager).

Despite of the time limitation, much knowledge has been obtained, a lot has been

learned and confidence has developed to perform in the workplace. The way of

communication with people and customer relationship skill has been developed.

Activities Performed. The 8 weeks of internship was very important as per the

activities performed. As an intern there were many activities that were handed over as

a part of daily routine work. I was placed basically in the Customer Service

Department, where I performed some of the activities under the supervision of my

supervisor due to the sensitivity of the issue and other activities on my own.

Some of the activities assigned in Customer Service Department (CSD) are:

i. Account opening.

ii. Cheque printing.

iii. Account closing.

iv. Handling telephone calls.

v. Scanning and Photocopy.

vi. Filing and record keeping.

vii. Relationship maintenance.

viii. Dealing with the customers’ complaints.

ix. Assistance in various service deliveries.

x. Helping customers fill up various forms.

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xi. Delivering ATM cards.

Sources of Data. In terms of data collection both primary as well as secondary

source had been used. For the primary data collection, different activities and working

environment of the bank are observed, personal interview are taken, informal

discussion, interaction and inquiries with the staffs are made for the relevant

information. And for secondary data collection, information from the official website

of the bank (www.nepalbank.com.np), the brochures of the different types of the

accounts, Official website of Nepal Rastra Bank (www.nrb.org.np) and other related

websites had been used for the qualitative data.

1.4 Limitations of the Study.

Internship was completed without any complications and o some extent, it somehow

fulfills the objectives of the study as well. Despite of all these, there are some

limitations of the study. Some of the major limitations are as follows:

i. The basic rule of restricting interns to work in various other departments

hampers in learning more activities.

ii. The report is prepared for partial fulfillment of requirement of BBA so it

lacks expert analysis.

iii. The report is based on personal interest and knowledge of internee only.
 6

Chapter 2: Introduction to the Industry

2.1 Introduction to Bank

Bank is a financial institution that works as a mediator between the persons

holding surplus and the person holding deficit. In simple words, bank refers that

social institution that borrows money from one class of people who have surplus and

lend it to the other group of people who are short of it and earn from spread rate. It

creates credit and also provides exchange facilities to the public. So, bank is also

known as a factory of credit production.

Banks are the financial institution that channelizes the fund in the economy

from one group of people to another group of people. They involve in the financial

transactions. The major activities of the bank are to collect the deposit and create the

credit for the needy ones. The modern economy has been fully controlled by the

banks. They decide the growth of the other sector. The major reason for the growth is

to safeguard the money of people and protect the poor class people from the

exploitation of the rich people. Before the banks were into existence the landlord used

to charge very high interest more than 100% was also charge and the money at

peoples’ hand was also not safe. So, bank came with the motto to safeguard the

property of the rich and protect the poor from the exploitation. Some definitions of

Bank are:

According to Nepal Rastra Bank Act 2058 Section 2 (a). “Banks means the

Nepal Rastra Bank established under the section 3 of this Act.” Likewise, the section

2(b) of commercial Bank Act 2031 banks means the commercial banks established

under this Act. In addition to this section 2(a) of the Negotiable Instrument Act 2034

defines Bank as the banks established under the existing law.

 7

“Banks are financial institutions that fund in the form of deposits, repayable on

demand or in short notice.” – World Bank

Banking industry is the backbone of an economy. It is the intermediary

mechanism that is primarily responsible for the transfer of the surplus funds from the

surplus generating units in the economy to the deficit facing units. Generally, the

surplus generating units are the units such as households and individuals that generate

small amount of saving. The deficit facing units, however, are the units such as

businesses, institutions and the government which have a huge appetite for funds.

There comes the role of banking industry as intermediary. Further, banks help in

uplifting the economic condition of the county by assisting in several economic

activities like: trade, commerce, industry, agriculture, service etc. The poor have been

protected from the exploitation of the landlords and people who want to start the

business are given loans and advances. The growth of the banking sector also has

brought the transparency in the spending of the government. All the activities are

carried out through the medium of banks and thus the misuse of the National treasury

has been safeguarded.

Some of the major functions of commercial banks can be enlisted as follows:

i. Capital Formation. Banks play an important role in capital formation, which

is essential for the economic development of a country. They mobilize the

small savings of the people scattered over a wide area through their network of

branches all over the country and make it available for productive purposes.

ii. Creation of Credit. Banks create credit for the purpose of providing more

funds for development projects. Credit creation leads to increased production,

employment, sales and prices and thereby they cause faster economic

development.
 8

iii. Channelizing the Funds to Productive Investment. Banks invest the savings

mobilized by them for productive purposes. Capital formation is not the only

function of commercial banks. Collected savings should be distributed to

various sectors of the economy with a view to increase the productivity of the

nation. Commercial Banks aid the economic development of the nation

through the capital formed by them.

iv. Fuller Utilization of Resources. Savings pooled by banks are utilized to a

greater extent for development purposes of various regions in the country. It

ensures fuller utilization of resources.

v. Financing Trade. The commercial banks help in financing both internal and

external trade. The banks provide loans to retailers and wholesalers to stock

goods in which they deal. They also help in the movement of goods from one

place to another by providing all types of facilities such as discounting and

accepting bills of exchange, providing overdraft facilities, issuing drafts, etc.

Moreover, they finance both exports and imports of developing countries by

providing foreign exchange facilities to importers and exporters of goods.

vi. Upliftment of the Lower and Marginalized People. The availability of the

investment opportunities, the availability of the funds for the various uses to

the people at large and the chance to get the opportunity to generate returns to

their small helps in the uplifting of the living standard of the marginalized

society with the limited access to the funds.

2.2 Industrial Analysis

Porter’s five forces model helps to analyze the overall banking industry. Porter's

Five Forces is a model that identifies and analyzes five competitive forces that shape

every industry and helps determine an industry's weaknesses and strengths. Five
 9

Forces analysis is frequently used to identify an industry's structure to determine

corporate strategy. Porter's model can be applied to any segment of the economy to

understand the level of competition within the industry and enhance a company's

long-term profitability. Porter’s forces are discussed bellow with reference to banking

industry.

i. Threat of New Entrants. New entrants in the banking industry pose always a

threat to the existing institutions. This is possible in most of the cases that the

new entrants enter the industry with advanced technology, creative minds, and

with strategy to address the customized peoples need. This will certainly pose

threat to the existing firm. However with ‘No New License for Opening Bank’

policy adopted by Nepal Rastra Bank, the threats from the new entrants are

minimal.  Further, Huge capital requirement further restricts the establishment

of new banks and existing banks are encouraged to merge together.

ii. Bargaining Power of Supplier. This force addresses how easily suppliers can

drive up the price of the goods and services. Depositors are the potential

suppliers of a bank. Due to increasing number of banks there are more

suppliers so they demand higher interest rate and more facilities. This makes

wide choice among the suppliers of funds i.e. depositors and hence they are

now able to bargain for the better terms and services.

iii. Bargaining Power of Buyer. Banks have increased in huge numbers.

Borrowers are the main buyers of a bank. So due to high numbers of banks,

borrowers have more choice of choosing the bank.  Due to unhealthy

competition among financial institutions to attract customers, Due to limited

market, unhealthy competition and low switching cost bargaining power of the

client seems to be high in banking industry.

 10

iv. Threat of Substitute. Threat of substitutes refers to the ability of the customer

to find a different way of doing what you do. In financial industry the threat of

being substitutes is high as there is a stiff competition among the banks. A

threat of substitutes typically impacts an industry through price competition.

Customers always want the quality product and services and they want in a

low and cheap price. People with wide array of substitute services finds easy

for them to switch the banks at minimal or no cost.

v. Competitive Rivalry. The competitive rivalry in the banking industry seems

to increase as the banks and other financial institutions are growing year by

year. As banks increases in numbers the competition among them are also

increased. In pursuing advantage over the rivals, banks started to choose

different competitive moves. Similarly, the availability of substitute products

with extended features across the banking industry and low switching cost as

observed in the market contributes to the highest level of competition in the

Nepalese Banking Industry.

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Chapter 3: Introduction to the Organization

3.1 Introduction of Nepal Bank Limited

Nepal Bank Limited is the first bank of Nepal. It proudly holds the glory of

marking the formal beginning of banking system in Nepal. Nepal Bank Limited was

established on Kartik 30, 1994 (November 15, 1937 A.D.) under Nepal Bank Act

1937. The bank was established with an authorized capital of Rs.10 million, issued

capital of Rs.2.5 million and paid up capital of Rs.0.842 million. The share held by

government and private sector was 60% and 40% respectively. 

Absence of any bank in Nepal was hampering the economic progress of the

country. This was taken into consideration by Nepal Bank Limited with key focus on

overcoming such economic hamper and difficulties of general public. This was

initiated by providing banking services to people removing their inconvenience. This

objective got better and bigger with the time. Nepal Bank Limited has so far adopted

according to the technological changes, national economic welfare and customer

preferences in services, market competition and global financial scenarios to become

a leading, glorious and highly reputed bank of Nepal.  

Nepal Bank Limited is the pioneer bank, started with objectives to render service to

people and to contribute to the nation’s development. Nepal Bank Limited holds the

largest network and operates even in remote areas of the country. Nepal Bank Limited

has been playing vital role in development of the banking sector of Nepal. Generating

profit through borrowing and lending is the core function of the commercial bank.

This function helps to uplift the economy of the country by collecting the funds in

micro level and lending in macro and, mobilizing the funds from surplus level to

deficit level. The success of the bank depends on the maximum collection of and the

optimum disbursement of the fund with minimum risk. For optimum disbursement of
 12

the fund with minimum risk bank needs to have the strong body to control the risk and

flow of the loan. In any bank this function is handled by credit department. Banking

sector occupies the major part in the whole world economy.

Vision. The corporate vision of NBL is to be the most preferred bank of the Nation

with complete banking solutions.

Mission. Nepal Bank collaborates with its customers while designing, developing,

and delivering banking solutions to satisfy the interest of all stakeholders by

efficiently leveraging cutting-edge technology. The bank endeavors to be ethical in

product offering, responsive in operation, and trustworthy in ensuring security to

protect its own and customers' interests.

Values. The followings are the core values (BREED) of the bank:

     B: Behave with dignity and respect.   

     R: Responsible.                                                       

     E: Ethical.                                                              

     E: Empower employees.                                   

     D: Devotee for innovation                         

Goals. The bank's goal is "To Achieve secured and sustainable business growth to

attain larger market share" through enhancing Operational Efficiency and Customer

Service, Increasing HR Productivity, and Risk Management System.

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Table 1
Corporate Strategy

Corporate
Strategies
Strategy No.

Enhance Business Growth and Profitability

1

Efficient Human Resources Management and

2
Organizational Effectiveness

Technology-driven transformation and digital customer

3
engagement

Improve Operational Efficiency and Customer Service

4

Ensure Effective Control, Compliance, and Risk

5
Management

Ensure Effective Assets Management

6

3.2 Capital Structure

Capital is the foremost and critical component for running day to day activities

of a business. The term ‘structure’ means the arrangement of the various parts. So

capital structure means the arrangement of capital from different sources; debt, equity

needed for the business to operate. The capital structure includes the proportions of

equity shares, preference shares, debentures, long-term loans, retained earnings and

other long-term sources of funds in the total amount of capital which a firm should

raise to run its business.

 14

Nepal Bank Limited was established with Rs 10 million as authorized capital,

issued capital of Rs 2.5 million and paid up capital of Rs 0.84 million. But, now it has

Rs 15 billion as authorized capital, Rs 12,636,758,624 paid-up capital. 51% capital is

owned by Nepal government and rest of 49% by public shareholders.

3.3 Products Offered by Nepal Bank Limited

Banks offer several credit and deposit products to its customers according to

their needs and requirements. The major products provided to the customers by NBL

are:

i. Deposits

ii. Loans and other credit facilities

Along with these products, other services that significantly contribute for NBL

revenue generation and customer retention include

i. Nepal Remit

ii. ABBS

iii. Locker

iv. Internet banking

v. Mobile Banking

vi. ATM Card

vii. Credit Card

viii. Others

Deposit. NBL offers a wide range of deposit products that caters the

requirement of the customers. They are: Savings deposit, Current deposit and Fixed

deposit.
 15

Loan. NBL offers a wide range of tailor made funded and non-funded credit

facilities to suit funding requirements. They are corporate loan and consumer loans.

Gold loan is the type of consumer loan provided by NBL.

Nepal Remit. NBL remit is an online based remittance service for the purpose

of facilitating to transfer the earning of Nepalese and Nepalese expatriates with very

minimal charge. Along with inward remittance from foreign countries, NBL remit is

powered by domestic money transfer facility through the entire banks branches

throughout the country with very minimal charges.

ABBS. NBL is proud to announce that all together 159 branches are enabled for

ABBS. In ABBS, customers having account with NBL can access account from any

online NBL's branch.

Safe Deposit Values. It helps to store items like important papers like insurance

policies, family records, birth certificate, leases, contracts, bonds and certificate of

deposits, jewels etc.

Internet Banking. NBL has introduced internet banking. Thus, customer does

not need to queue at a branch.

Mobile Banking. Customers have access to banking needs without ever having

to wait in queues. Customers can make instant balance information and account

statement print requires. Customer can know latest rate of foreign currency.

ATM/Debit Card. NBL ATM allows its customer to access vast network of

ATMs located in major cities in Nepal. It allows the cardholder to withdraw cash,

inquire account balances and to pay.

Credit Card. NBL issues credit card for its valuable customers with a pre-set

credit limit, helping the customers to make cashless credit transactions. The card
 16

issuer determines the credit limit based on your credit score, credit history and your

income.

Others. NBL makes payments of social security allowances and pension

allowances under the direction of Government of Nepal. It also provides facility like

Fonepay (QR) and POS.

3.4 Organizational Structure

The bank is under the control of Nepal Rastra Bank. Nepal Rastra Bank has

appointed a five members management committee. This management committee

performs as the Board of Directors of the bank. Chief Executive Officer (CEO) is

under the Board of Director (BOD) followed by General Manager (GM), Deputy

General Manager (DGM) and then other departments which is presented below:
 17

S
ource: www.nbl.com.np
Figure 1. Showing organizational structure of NBL

Branch
Manage
r

Operatio
Credit
n
Incharge Incharge

Remittan Credit
Customer Teller
ce and
Service
clearing
(Cash) (loans)
Figuure2.O
rganizational structure of NBL Budhabare
 18

Board of Director is a group of shareholders elected by the shareholders

themselves in order to carry out supervisory activities of the bank. The structure and

power of the board is determined by the rules and regulations of the organization

itself. Bylaws can set the number of board members, the manner in which the board is

elected and how often the board meets. The following table shows the composition of

Board of Directors of NBL.

Table 2
Composition of BOD of NBL

Name Designation

Suman Raj Aryal Chairman

Deependra Bikram Thapa Director

Dr. Savitri Ranjit Shrestha Director

Vivek S.J.B. Rana Director

Vishnu Kumar Agrawal Director

Rochan Shrestha Director

Keshab Prasad Gyawali Director

Kedarnath Sharma Director

3.5 Departmental Functions

NBL Budhabare is divided into two main departments: Credit department and

Operation department. Both departments are under the supervision of the branch

manager. The Credit department is charged with assessing the creditworthiness of

individuals and business customers before issuing any type of credit. This includes

evaluating credit reports, earning statements, bank records and tax returns. Operation

 19

department is further divided into Cash Department, Customer Service Department

and Clearing and Remittance Department. The cash department performs functions

that include receiving of cash, payment of cash, daily balancing of cash, scrutiny

of cash, safe keeping of cash, cash remittance, receiving & disposal of mutilated notes

etc. Under CSD the functions like handling customers' queries, opening and closing

accounts, handling telephone calls etc. are performed. Lastly, under the Clearing and

Remittance Department, interbank cheques are cleared and remittances are sent and

received and interbank payments are transferred through IPS.

3.6 SWOT Analysis

SWOT analysis is a strategic planning technique used to help a person or

organization identity strengths, weaknesses, opportunities, and threats related to

business competition or project planning. SWOT analysis of NBL reveals various

strengths, weakness it needs to work on and the opportunities and threats presents in

the environment that it has to focus on.

Strengths. Strengths are the qualities that enable us to accomplish the organization’s

mission. These are the basis on which continued success can be made sustained. The

strengths of NBL Budhabare are:

i. Highly convenient location. SRBL Budhabare is located in a very

convenient location. The office is situated in the heart of the city which

is very easy and time efficient for the people of Budhabare to visit for

day-to-day work. Locals of Budhabare prefer NBL due to its

convenient location which is a main strength for the bank.

ii. Goodwill. Being the first commercial bank of the country, NBL has a

higher positive goodwill in the industry. Most of the customers it has

 20

been serving are from the beginning phase. The bank has been very

effective and efficient in serving those customers.

Weakness. Weaknesses are the qualities that prevent us from accomplishing our

mission and achieving our full potential. Weaknesses are the factors which do not

meet the standard we feel they should meet. The weaknesses of NBL Budhabare are:

i. Insufficient employees. NBL Budhabare does not have sufficient

employees in the operation department due to which the customers have to

wait for longer time to get their work done. It is one of the major weakness

of the bank which may create customer dissatisfaction.

ii. Use of less efficient technology. Customers of the bank have to face

problems regularly due to the failure in banking system. The problem

arises mainly due to slow internet and outdated computer systems.

Opportunities. Opportunities are presented by the environment within which the

organization operates. These arise when an organization can take benefits of

conditions in its environments to plan and execute strategies that enable to become

more profitable. The opportunities of NBL Budhabare are:

i. Increasing customers. People in less developed areas like Budhabare

are now more encouraged to perform their financial transactions through

banks. The increasing craze of Share Market has also boosted the number

of new bank accounts and DMAT accounts. This is a great opportunity

for NBL Budhabare to increase its customers thereby increasing

profitability.

ii. Technology innovations. Increase in use of new banking technologies

like QR, POS and M-Banking is a great opportunity for the bank to

capture the market through first mover advantage.

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iii. Higher interest rate in Fixed Deposit.

Threats. Threats arise when the conditions in external environment threatens the

reliability and profitability of the organizations business. Threats are uncontrollable.

The major threats for NBL Budhabare are:

i. Increasing competition. Many banks and financial institutions have been

established in Budhabare ever since the establishment of Nepal Bank.

They are also providing good facilities to the customers. It is a great threat

for the bank to compete in the market and retain its customers as well as

its employees.

ii. Political instability. The instability in the Nepalese government creates

various problems for the financial institutions. It can be a great threat for

the bank.
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Chapter 4: Analysis of Activities Done and Problems Solved

The internship period of eight weeks in NBL Budhabare branch was very

fruitful, involving several activities carried out in the Customer Service Department of

the bank. Real work life pressure was felt, several daily problems was faced and

solved as well. Thus, this chapter mainly focuses on the department that was given a

focus during the internship period and the activities performed by intern.

4.1 Activities Done

The involvement as an intern in the NBL, Budhabare branch was very fruitful

and rewarding from the aspect of gaining practical exposure to the banking industry

as well as to the corporate world. Facing the various situations in the branch helped

me develop a new insight of the works performed in the banking industry. The

analyses of the activities performed in the various departments are given below:

i. Customer Service Department (CSD).

CSD is the front desk of an organization. When any customer visits the

institution then the first impression of the institution is given by the customer service

department. As the name suggests this department is primarily involved in providing

services to the customers from answering the queries of the customers to delivering

the service of account opening and other related services. Internee was primarily

placed in the CSD. Following are the activities performed in the department during

the period of internship:

Handling Customers. The primary function of customer service department is

handling customer and sorting out their inquiries, provide education to the customers

about their products, services and help resolve any problems the customer presents,

while portraying a positive impression of the company. At NBL Budhabare, when the

clients visit into bank, they are first greeted by the front line staff positioned at
 23

customer service department and they are asked about their purpose of visit. Then,

customer is guided or followed by the staff as per their requirement after

understanding their purpose.

Account Opening. Customer need to open new account to keep deposit in the

bank to perform other banking related activities and to enjoy several facilities

provided by the bank. Opening an account is entering into a contract with the bank.

Only the party capable of contracting according to the lass can open an account. NBL

provides different schemes for opening an account. Opening an account involves is

the first step to make customers to come in its contract. A customer can select the

account according to their need and preference. Following Documents are required to

open bank account in NBL:

Personal Account (saving)

i. Citizenship card

ii. 2 Passport size photo

iii. In case of minor birth certificates, guardian's citizenship and 2

photographs

iv. Know Your Customer (KYC) supporting documents

v. Location proof document for such as voters ID, Bills payment

voucher, land ownership certificate etc.

Joint Account

i. Citizenship card photocopy of all parties

ii. Passport size photos of all parties

iii. Know Your Customer (KYC) supporting documents

iv. Location proof document for such as voters ID, Bills payment

voucher, land ownership certificate etc.

 24

Institutional Account

i. Firm registration certificate or PAN number

ii. Stamp of the institution

iii. Memorandum of Article of association of the company

iv. Resolutions/ Minutes of BOD to open and operate an account

v. List of directors, home address and phone number duly signed by

respective directors

vi. KYC along with the map

vii. Certificate of registered business

viii. Citizenship of the concern signatory and their supporting

documents.

Account Closing. According to the customer demand, once opened account is

closed. For this, customer needs to fill up the account closing application with the

reason. After filling form customer must pay the charge as per the bank’s rules and

regulations, remaining cheque book should be hand over to the bank and then only

remaining balance of customer is refund to the customer.

Providing Account Statement. Account statement is provided to the customer

as they needed. Account statement is recorded in the statement record book. For the

corporate account holders, statement is provided on the monthly basis. Account

statement should be collected the account holders or agent of account holders. In case

of organization, statement is provided only if letter is presented and signature of the

particular persons as mentioned in the signature card.

Cheque Printing and Binding. Cheque is the important authentic paper that is

required for customer to withdraw money from their account. The issue of new

cheque is performed by CSD. It is one of the important functions of CSD. Everyday a

 25

number of cheques are printed for which the following steps are applied. Receiving

the requisition slip from the customer with the signature of account holder along with

the agent who receives the cheque book. The signature is verified with the signature

stamp. The requisition is printed and after which cheques are printed with same

format. The cheques are bind properly. The printed cheques are recorded in the

cheque issued record file. Verifying the agent’s signature and after which the cheque

is delivered to the party or customer.

Checking Account Balance. Many customers are unsure about their balance in

their account and the signature they did while opening account. Customer must have

be the same signature in cheque which they have done while opening account. So

when the customers become unsure about their signature they come to CSD desk to

see their signature in the system. Some customers also come to CSD desk to know

their balance. Intern got the chance to use system and let customer to know their

balance signature.

Responding To Phone Calls. CSD is also responsible for responding phone

calls of the customers and transferring it to different departments as per the needs of

customer through intercom. The customer generally calls to know about their balance,

to know about various facilities provided by bank, to know about various criteria and

requirement to open account and to initiate different banking activities provided by

NCC Bank.

Issue ATM Card. To issue the ATM card the form is filled up at time of

opening an account but if the customer has not taken the service at the time of account

opening he can take the service at the time he wants. The forms are collected and are

forwarded to the corporate office for the issue along with the details of account
 26

holder. The corporate office makes the ATM cards and sends to concerned branch.

Fee for ATM is deducted from balance of respective customers.

Scanning and Photocopy. The activity of making the photocopy of the

documents such as the Citizenship Certificate of the customers, the FD receipt and the

other documents as asked by the staffs of the bank was performed during the

internship period. The account opening forms of the customers (signatures of the

accountholders and their photos) and other documents were scanned during the

period.

Filing and Record Keeping. Proper filing of the things like cheque requisition

form, ATM acknowledge form, account opening form, pension renewal form, mobile

banking renewal form etc. Updating of the account opening register for the new

accounts opened, mobile banking service provided, ATM card and pin delivered and

getting the signature of the authority on the register was also done.

Relationship Maintenance. Maintaining good customer relationship was

another motto in the CSD. As an intern the main focus was on the walk-in customers

as well as the existing customers because the walk-in customers were the potential

customers of the bank who would make the word-of-mouth advertisement of the bank

and the existing customers are the assets of the bank.

Miscellaneous Activities. Several other miscellaneous activities were

performed during the period of internship. The activities performed in the CSD may

be listed below:

i. Provide customer with balance certificates, statements, customer advices

as per the rules and regulations of the bank

ii. Provide debit cards.

iii. Maintain good relationship with customers

 27

iv. Writing the applications as instructed by the supervisor on behalf of the

customers.

v. Assisting in the Financial Literacy Program organized by the bank in

several colleges and schools.

4.3 Problems Identified and Solved

Some of the problems encountered during the internship periods are as follows:

i. Slow delivery of ATM cards because of which customers felt some levelof

trouble.

ii. Frequent ATM related problems because of malfunctioning of ATM machine.

iii. Sometimes there arises the problem by system failure.

iv. Sometimes convincing old age customers about their actual balance amounts

and their withdrawals was challenging.

v. Problems related non functioning of mobile banking was frequent.

4.4 Possible Solutions

i. ATM cards should be provided within few days itself by printing them in the

provincial office or zonal office itself.

ii. Regular maintenance of ATM machine and the CSD officer clarifies the actual

scenario and apologies if it is due to the fault of the machine otherwise pointed

out the fault of the customer.

iii. The technology, internet service and system should be up to date in order to

serve the customers well and to be competent.

iv. The old age customers should be handled and convinced with more efforts and

considerations.

v. Mobile banking system should be more advance and more systematic.

 28

4.4 Observed Gap

Knowledge gained from the academic courses seemed to be totally different in

practice. Although, there is a huge gap between theory and practical, the concept of

the theory is essential in the workplace. After completing the internship in NBL

Budhabare, internee was able to gain practical knowledge more regarding banking

activities. The interpersonal skill also got increased, communication and customer

handling skill got sharpen from the CSD desk and further, it help internee in boosting

the self-confidence. Because of the internship, an internee gets knowledge about the

structure of bank, its system, procedure and many more.

The term motivation was only studied in the classroom, during the phase of

internship one came to experience how it is actually carried out. Most of the

techniques of motivation that was learned in the classroom were not applied to

motivate the employees. The techniques of motivation observed were monotonous,

there was lacking of newness and innovation.

The interns were only allowed for clerical tasks but not for managerial task;

though, BBA aims to develop middle level managers. In the theoretical knowledge it

was studied that the banks follow each and every regulations imposed by NRB but the

company does not seem to follow these rules as prescribed. The good example is

KYC form should be filled in front of the customer but it will be filled in the same

format after opening the account.

At bank there was difference between customers’ expectation and their

experiences. Customers wanted to gain multiple of services easily from bank but the

customers need to go through various procedures for simple tasks also. Internee found

those procedures time consuming and unsystematic which made the customers to wait

for long time for a single work.

 29

Chapter 5: Conclusion, Lesson Learnt and Recommendation

5.1 Conclusion

Despite of being one of the underdeveloped nations, banking sector is rapidly

developing in Nepal. In fact, banking is a backbone of the economy of the nation and

is constantly developing. Banking sector has higher potential and better scope for a

career development.

In the modern education system, internship plays a crucial role as the act of

mediator for the student to connect the theoretical knowledge with practical working

environment. Internship program provides an opportunity to provide practical

knowledge along with academic program. Exact to the motive of the internship

program during the internship period, the intern got an opportunity to explore the

theoretical knowledge into the real working environment.

Internship played a major role in understanding the practical application of the

knowledge that is learnt academically. Not only that, it gave various opportunity for

the intern to develop various skills and other practical knowledge as well. Similarly,

the interns also got the insight of the working environment of the organization and its

scope for career development. Internship also managed to develop relationship with

the employees of the bank as well as other people.

The internship gave intern the perfect opening to plant his acquaintance in the

appropriate field. It helped intern to apply the year’s long theoretical lessons into

practical area. Further, in past 2 months, intern learned to work under pressure and

broadened the knowledge, vision, ability and confidence to perform in real working

upbringing. It was a great chance to gain practical knowledge of banking sector.

 30

It was the great experience working as an intern in Nepal Bank Limited. The

operational environment was friendly. There was good communication and healthy

relationship in between the different levels of staffs. Working as an intern mainly

provided an opportunity to learn about practical implication in our career building.

Hence, it is a significant platform for our future career.

While concluding this report, I am intensely satisfied with the internship and its

outcome.

5.2 Lesson Learnt

The duration of internship lasted for around two months and during the course

of the internship there were various lessons that intern was able to learn. Beside this,

this internship provided a great opportunity to work with the excellent, friendly and

helpful staffs of NBL Budhabare branch that helped internee to increase practical

learning experience and provide a platform to show the ability to perform the job, the

importance of the time management and the need of good communication skills. In

internship period, intern was assigned in CSD of NBL where lots of real lives

working experience were learnt which can be briefed as:

The first and foremost lesson learned was that, for any organization customers are the

crucial part that determines the success or failure of the institution. Satisfied

customers are the reason for any successful organization.

Further, an internee came to learnt about the importance of CSD in the bank and its

various activities i.e. cheque printing and distribution, opening and closing accounts,

dealing with customers, etc.Learnt how to operate banking system software up-to

basic level.
 31

Thirdly, the role of communication skill, time management skill and inter-personal

skill while handling the customer is very crucial in CSD to motivate the customers

and maintain healthy relationship with them.

Patience is the key to handle the customers. One has to be calm in any kind of

situations while dealing to the customer. Co-operation is the symbol of bank being

customer-friendly. So, the person at the CSD should be as much helpful as he/she can

to make positive impact of the bank.

And last but not the least, learned about how to use the technical equipment such as

photocopy machine and scanner to copy and scan the documents as the process of

documentation in the bank. The way of using banking software like Pumori was also

learned.

5.3 Recommendation

Nepal Bank Limited is the first bank of Nepal. It has its goodwill enrooted

among its valuable existing customers but NBL lacks attracting new advanced and

young customers. The problem faced by the customers in ATM and Mobile banking is

quite frequent. The global technologies and systems are advancing rapidly hence

proper training should be provided to the employees.

The bank should shift their investment and credit strategy to the productive

industrial sector of the economy so as to have an adequate capital formation for

overall national development. The bank has to start providing venture capital on a

phase basis by encouraging people of talent and innovation to start new ventures if

there exists better prospects and chances of success in future.

 32

Based on the overall study, information and data analyzed and lending policies

adopted by NBL, my suggestion in order to strengthen the profitability and lending

condition of NBL in future are:

The bank should adapt more advanced technology for making ATM card and deliver

to customer in less time period. Thereafter, the bank should regularly maintain its

ATM machine which gets broken most of the time and teach all the customers how to

use ATM machine properly.

It would be a great initiative if the customer feedbacks are taken more seriously by

every department of bank so that bank can improve customer service quickly.

Several youth focused schemes have to be launched to attract the youths in the bank.

More credit products should be launched so that people get encouraged to invest in

productive sectors.
 33

References
Aaltonen, P. G. (2004). Customer Satisfaction of Banking Services: Ab overview.

SAJOSPS, 85-90.

Bhandari, D. (2003). Principal and Practices of Banking and Insurance. Asia

Publications.

Thapa, K. (2017). Commercial Banking Operation. Kathmandu: Khanal Publication

PVT.LTD

Renganathan, S., Abdul Karim, Z.A., & Chong, S. L. (2012). Students’ perception of

industrial internship programme. Education + Training, 54 (2/3), 180-191

Jha, S., & Hui, X. (2012). A comparison of financial performance of commercial

banks: A case study of Nepal. African Journal of Business Management , 6 (25),

7601- 7611.

Websites:

www.nepalbank.com.np

www.worldbank.org