EXPLORING THE

CUSTOMER SERVICE ACTIVITES

AT

MUKTINATH BIKAS BANK LIMITED

Bhaisepati, Lalitpur

An Internship Report

Submitted by

Aashish Maharjan

Symbol No: 270930

PU Registration No: 065-2-2-01152-2018

Kantipur Valley College

In Partial Fulfilment of the Requirement for the Degree of Bachelor of Business

Administration (BBA)

Purbanchal University

Kumaripati, Lalitpur

January 2023
 i

DECLARATION

I, Aashish Maharjan, hereby declare that the presented report of internship entitled
“Customer Service Activities on Muktinath Bikas Bank Limited” is uniquely prepared by me
after the completion of 12 weeks’ work at Bhaisepati Branch of Muktinath Bikas Bank
Limited.

Further, I would like to declare that this report is only for the academic purpose. To
the best of my knowledge and belief, it doesn’t contain nay previously published or written
by another person, expect when due reference is made in the text.

Thanking You

……………………

Aashish Maharjan

Symbol No: 270930

Kantipur Valley College

PU Registration No: 065-2-2-01152-2018

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ACKNOWLEDGEMENTS

The entire effort of this report has been made simply to give a complete shape to the
partial fulfilment of the BBA 7th Semester program of Purbanchal University. This report is a
product of hard study; query involves many people’s considerate attention to it. Without their
suggestion and co-operation, the preparation of this report would have been impossible. So, I
want to extend my gratitude to them.

First of all, I would like to thank Kantipur Valley College for giving me the
opportunity to transfer my theoretical knowledge into practice. I would like to thank all the
teachers who have supported and helped me to complete the internship program as needed. I
am grateful to my instructor Dr Chet Nath Pant for this cordial supervision, cooperation,
inspiration and guidance while preparing this report.

I would also like to thank the Branch Manager, Mr Sampurna Maharjan and Customer
Service Department Miss Shubhechha Thapa Magar of Muktinath Bikas Bank Limited,
Bhaisepati for providing me the opportunity to complete my 12 weeks’ internship program
and for helping me to gain the knowledge about banking sector. Equally, I am also grateful to
Shanti Kuwar, Niranjan Dahal, Sunita Mahat, Buddhiman Majhi of the bank for guiding me
in the work and for providing me the friendly environment.

Finally, I would like to thank my family and family and friends for supporting me
during my internship and helping me to complete this report.

Thank You

Aashish Maharjan
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ABBREVIATIONS

A/c: Account

ABBS: Any Branch Banking Service

ADSL: Asymmetric Digital Subscriber Line

ATM: Automatic Teller Machine

BBA: Bachelor of Business Administration

BOD: Board of Director

CEO: Chief Executive Officer

CSD: Customer Service Department

IME: International Money Exchange

KYC: Know Your Customer

MNBBL: Muktinath Bikas Bank Limited

NRB: Nepal Rastra Bank

NTC: Nepal Telecom

POS: Point of Sales

PU: Purbanchal University

SMS: Short Message Service

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TABLE OF CONTENTS

DECLARATION....................................................................................................................................i

ACKNOWLEDGEMENTS...................................................................................................................ii

ABBREVIATIONS..............................................................................................................................iii

TABLE OF CONTENTS......................................................................................................................iv

LIST OF TABLES................................................................................................................................vi

LIST OF FIGURES.............................................................................................................................vii

EXECUTIVE SUMMARY.................................................................................................................viii

CHAPTER ONE....................................................................................................................................1

INTRODUCTION.................................................................................................................................1

Overview of the bank........................................................................................................................1

Brief History......................................................................................................................................1

Origin of Bank...............................................................................................................................1

Meaning of Development Bank.........................................................................................................3

Functions of Development Bank...................................................................................................4

Introduction of Muktinath Bikas Bank Limited.................................................................................4

Introduction...................................................................................................................................4

Objectives......................................................................................................................................4

Vision............................................................................................................................................4

Mission..........................................................................................................................................5

Values............................................................................................................................................5

History of MNBBL........................................................................................................................5

Business Volume...............................................................................................................................6

Nature and Number of Employees.....................................................................................................7

Product and service of MNBBL........................................................................................................7

Objectives of the study....................................................................................................................11

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Methodology...................................................................................................................................12

Observation.....................................................................................................................................13

Functions of Customer Service Department (CSD).....................................................................13

Details of the Assigned Work Responsibilities............................................................................13

Problem Encountered During Performing Work and Fulfilling Work Responsibilities...............16

CHAPTER TWO.................................................................................................................................18

ANALYSIS AND REVIEW...............................................................................................................18

Analysis of Data Collected on any Specific Issues..........................................................................18

Critical Analysis of the Theoretical Concepts..................................................................................24

Knowledge Gain from the Work Assigned......................................................................................25

SWOT Analysis...............................................................................................................................26

CHAPTER THREE.............................................................................................................................28

CONCLUSION AND RECOMMENDATIONs.................................................................................28

Conclusions.....................................................................................................................................28

Contribution of Internship in knowledge Gain................................................................................28

General Comments and Recommendations.....................................................................................29

References...........................................................................................................................................31

Journal.................................................................................................................................................31

Appendix 1..........................................................................................................................................34

Appendix 2..........................................................................................................................................35
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LIST OF TABLES

Table 1: Shareholding Composition of MNBBL.......................................................................6

Table 2: Network Overview of MNBBL...................................................................................7

Table 3: Nature and Number of Employees of MNBBL...........................................................7

LIST OF FIGURES
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Figure 1: Organizational Structure of MNBBL, Bhaisepati Branch........................................11

Figure 2: Timely Service of the Bank......................................................................................19

Figure 3: Precise Banking........................................................................................................19

Figure 4: Reward Scheme........................................................................................................20

Figure 5: Capacity Building Training......................................................................................21

Figure 6: Performance of Employees.......................................................................................22

Figure 7: Responsibility for the overall affairs of the bank.....................................................23

EXECUTIVE SUMMARY

The four year of Bachelor of Business Administration (BBA) program in faculty of

Management of Purbanchal University (PU) consists of total eight semesters which require
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students to undergo an internship program, in the 7th semester, for minimum eight weeks in
an organization. The internship program, which the BBA students undertake, targets to
provide the practical exposure, to train and prepare students for managerial functions, to
develop work culture within them, to uplift their interpersonal and communication skills
encouraging them to interact with the people in the organization. The general objective of this
program is to explore new facts and understand realities how organizations functions and
gain the practical experience in the related field. This further helps the students to expose
themselves to the real world where they can apply their theoretical knowledge.

I was placed in the Customer Service Department and got to experience the real
banking working scenario. I worked in the CSD and helped the staff members of Muktinath
Bikas Bank Limited with account opening, ATM card issuance and distribution, cheque
distribution, deal with queres related to the customers and so on.

Although this report is the outcome of 12 weeks’ experience in CSD of MNBBL, I

have mentioned all the important information as far as possible. This report is based on
outcome of various experiences, interactions, analysis done during internship periods and
other secondary data.

Finally, the period of 12 weeks’ of internship at MNBBL was more of worthwhile and
I had an opportunity to gain much experience which is going to be helpful in the future
career.
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CHAPTER ONE

INTRODUCTION

Overview of the bank

A bank is a type of financial institutions that are established a certain act to perform
money and credit transactions. The bank accepts the deposits in the form of capital and
collateral, formulates, and implements monetary and foreign exchange policy to maintain
price and balance payment stability for a sustainable development of the country.it provides
necessary liquidity for promoting the stability of the financial sectors. It raises funds by
collecting deposits from business and consumers through saving deposits, time deposits.
Besides this, it gives facilities to business like giving loans to business, housing, saving
deposited money, buying and selling of bonds etc.

“Bank means a corporate body incorporated to carry on financial transaction as

referred by law”. (BAFIA, 2063)

Brief History
Origin of Bank
The word ‘BANK’ has been derived from the Italian word “Banco”, French word
“Banque”, meaning desk or bench that means transaction over a desk. A bank is a financial
institution licensed to receive deposit and make loans. Even the practice of banking is
originated in medieval Italian city-states, these practices didn’t appear out of nowhere. They
were the culmination of many centuries of development. Italy became the birthplace of
banking in the twelfth and thirteenth centuries because it was at the centre of a global trading
network that exposed Italian traders and their financiers to various methods of money
management. Italians then built on this knowledge to create new and better methods of
handling financial exchanges. In 1202, Leonardo Fibonacci published a book called the Liber
Abaci—The Book of Calculation. Famous today for the Fibonacci sequence, Fibonacci was
the son of a customs official—someone who collects taxes on imported goods—so he had a
lifetime of experience with trade and finance. In his book, Fibonacci explained how to use
mathematical concepts that had been developed in India and the Middle East and apply them
to the business of trade and money management.
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Banks were first introduced in Rome with its vast trade networks that extended
throughout the Europe, Asia and much of Africa. The first bank of the world is Bank of
Venice established in 1157 A.D (Bashistha, 2076). Following the footsteps of this bank, other
banks were also established. “The most famous Italian bank was the Medici Bank, establish
by Giovanni Medici in 1397.” (Goldthwaite 1995) Namely: Bank of Barcelona (1401), Bank
of Genoa (1407), Bank of England (1694) and Bank of Amsterdam (1609). Likewise India
established its first bank, “Bank of Hindustan” in 1770. These modern banks gradually
replaced the merchants, goldsmith and money lenders. In 1960’s banking was introduced to
world because of increase in their worldwide operations and increase in multinational
companies.

Nowadays, banks are referred has been taken as lifeblood for business houses as they
offer many facilities like travellers cheque, insurance services, pension services and other
investments. The crucial breakthrough in the modern banking history was made in 1694 A.D
when the first modern bank “The Bank of England” was established. After the establishment
of this first English Bank, banking sector had wide development for providing service to
customers. In Nepal origination of formal banking system was started with the establishment
of Nepal Bank Limited in 1937 A.D. Then Nepal Rastra Bank, the central of Nepal was
established in 2013 under NRB Act 2012. Then after other commercial banks and financial
system was started slowly and gradually in Nepal. In this way banks and financial system was
originated.

Evolution of Banking Industry in Nepal

The term bank is derived from Italian word ‘Banco’ meaning bench or money
exchange table. In olden days, European money lenders or money changers used to show
coins of different currency in big quantity on benches or tables for the purpose of lending or
exchanging. The first bank was Bank of Venice established in 1157 A.D. After that, various
banks were established all over the world for smooth performance of financial activities.

Traditional Banking system existed in Nepal for a long time before the introduction of
modern banking system. History indicates that at 723A.D Gunakamadev reconstructe.
Kathmandu by taking loan. Similarly, during the end of 8th century Shankhadhar Sakha paid
all the dues that are taken by people of Kathmandu valley and introduced new era. Traditional
banking system deals with only giving and taking of loans. Under this system there are 4
types of banks existed. They are Tankadhari, Tejarath, Mahajan and Desi bank. Among them
 3

Tankadhari (money dealer) was used in the middle of 14th century when they got recognition
as one of the 64 caste classified on the basis of occupation by Jayasthiti Malla. In 1933 Rana
Prime Minister Ranoddip Singh introduced Tejarath Adda as government financial
institution. It was one of the economic and financial sector reform by Ranoddip Singh. The
main objective of Tejarath Adda was to free people from the exploitation of Tankadhari.
Tejarath Adda provided loan to general people at a concessional interest rate of five percent
against gold, silver etc. During Prime Minister Chandra Shumsher period, legal provision was
made not to capitalize interest on loan. The only source of Tejarath Adda was government
fund as it did not accept any deposit from public. So, this failed to meet the need of general
public.

The initiation of formal banking system in Nepal commenced with the establishment
of Nepal Bank Limited in 1937 A.D., the first commercial bank in Nepal. The country’s
central bank, Nepal Rastra Bank was established in 1956 by Act 1955 after nearly two
decades of NBL having been in existence. A decade after establishment of NRB, ADBL, and
a fully owned government commercial bank was established in 2022 B.S. Then Nepal
adopted open and liberalized policies in the mid-1980s reflected by structural adjustment,
including privatization, tariffs adjustment, easing of terms of foreign investment and so on. In
the 1980s Nepal opened the commercial banking sector to foreign participants. Since then the
first joint ventures bank was set up as Nepal Arab Bank Limited now called as NABIL Bank
Limited in 1984. There after Nepal Indosuez Bank Limited now called as Nepal Investment
Bank was established in 1986 and Nepal Grindlays Bank was established in 1987 now called
as Standard Chartered Bank. There after other several commercial banks have been
established with in the period of years. Banks are divided into 4 classes namely A for
Commercial Banks, B for Development Bank, C for finance Companies and D for Micro
Credit Development Banks as per their minimum paid up capital. Till toady there are 28
commercial banks, 31 development banks, 25 finance companies and 47 micro credit
development banks are in operation.

Meaning of Development Bank

Development banks are specialized financial institutions. They provide medium and
long-term finance to the industrial and agricultural sector. They provide finance to both
private and public sector. Development banks are multipurpose financial institutions. They do
term lending, investment in securities and other activities. They even promote saving and
investment habit in the public.
 4

Functions of Development Bank

● Financial Gap Fillers

● Undertake Entrepreneurial Role

● Commercial Banking Business

● Joint Finance

● Refinance Facility

● Underwriting of Securities

Introduction of Muktinath Bikas Bank Limited

Introduction
Muktinath Bikas Bank Limited (MNBBL) was established on 19th Poush 2063 B.S.
(i.e. 3rd January 2007 A.D.), The Bank is licensed by the Central Bank of Nepal to operate as
a “B” Class National Level financial institution with its Central Office at Kamaladi,
Kathmandu, Nepal. Today, Muktinath Bikas Bank is known as the leading Development
Bank of Nepal with a history of its own. MNBBL’s authorized capital was NPR 8.00 billion
and issued capital and paid-up capital was NPR 5.65 billion. The bank has been providing
banking through its branch offices in the different geographical locations of the country.

Objectives
Muktinath Bikas Bank Limited has the following objectives:

● Focus on building the positive net worth and meeting minimum capital requirement

over the coming five years.

● Focus on increasing the customer base and market share.

● Maximize the potential/ efficiency of bank’s staff.

● Focus on minimizing the risk associated with the business.

● Focus on providing the world class business solutions.

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● Focus on increasing the sustainable profit.

Vision
Be the most preferred robust Bank in Nepal while uplifting socio-economic status of
people.

Mission
Become a leading, financially viable, socially acceptable, regulatory complaint,
environment friendly, inclusive financial services provider for all the stakeholders' wellbeing.

Values

● Goal Focused

● Result Oriented

● Ownership in the tasks

● Well-Being

History of MNBBL
The citizens of Syangja District (a hilly district with tough geographical terrain) were
starved for financial needs and the local people were undoubtedly had to travel to Pokhara
(the only nearby metro, with approximately 38 Kilometre mountainous road linkage) for
petty transaction such as withdrawal of mere NPR 5,000/- (approximately $50). The cost of
travelling and other involved security risk, hectic involvements and more costs thereon. Then,
the need for an immediate solution to these problems was felt and a seed for the same was
cultivated. The like-minded group of innovative local intellectuals from various sectors
joined hands together to establish a local private sector Bank to resolve the issues being dealt
by people of Syangja District.
Likewise, on January 3, 2007, (We) the proposed Bank got license from the Central
Bank of Nepal (i.e. Nepal Rastra Bank) to operate Banking Business initially in three districts
namely Syangja, Kaski and Tanahun of then Western Development Region (currently
Gandaki Province) as a “B” class financial institution.

Since inception, the Bank has been adopting the deep rooted values of financial
inclusion of the community and core principle of “Janata Bank ma Hoina, Bank Janata
 6

ma Janu Pardachha.” i.e. “People should not come to the Bank; Banks should go to the
doors of people”. The Bank prioritized opening branches in the rural areas where in the
absence of any financial institution, people were in dire need for banking services. The
customer friendly products, services and door-to-door facility are the major factor for the
Bank’s popularity and success among the local people of the area. Within one and half years
of operations in the month of April 2009, the Bank started a Microfinance Program in its host
of services with starting a dedicated department at central office and branches to serve low
income but high potential people with high productivity. The Bank was the first “B” class
Bank with 3 pillars strategy of Modern Banking, Rural Banking & Micro Banking for serving
low-income people with dedicated departments for the same.

At Present

The Bank has a noticeable Balance sheet size of NPR 101.09 Billion (equivalent to
USD 852 Million) as of Ashad End 2078 (July 2021) with 950,000 happy customers from
different age, communities, societies and ethnic groups as of July 2021. The Bank has a large
footprint of 174 branches and 3 extension counter with 121 ATMs spread across the country
as of date.

Business Volume
Shareholding Composition

S.N Ownership Percent

1. Promoters contribution 51

2. Public contribution 49

Total 100

Table no 1: Shareholding Composition of MNBBL

MNBBL Network Overview

Region wise Branches No. of Branches

Butwal region 18

Damauli region 8
 7

Dhading region 9

Itahari region 18

Janakpur region 16

Kathmandu region 42

Kohalpur region 18

Narayangarh region 12

Pokhara region 21

Syangja region 12

Total no. of Branches 174

Table no 2: Network Overview of MNBBL

Nature and Number of Employees

MNBBL, Bhaisepati branch is operating with 7 staff members including 3 ladies and
4 gents. Out of 4 gents 1 is guards and rest 3 gents are working in different post. The staffs of
MNBBL, Bhaisepati are co-operative and sociable towards their customer. There is good
relationship between the staffs. They work as a family member to make working environment
friendly.

Employees of Muktinath Bikas Bank Limited, Bhaisepati Branch

Level Male Female Total

Branch Manager 1 - 1
Operation in-charge - 1 1
Loan Officer 2 - 2
CSD - 1 1
Cashier - 1 1
Guard 1 - 1
Total 4 3 7
Table no 3: Nature and Number of Employees of MNBBL
Source: Official Record of MNBBL, Bhaisepati Branch (2022)
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Product and service of MNBBL

MNBBL mainly generates its revenues from credit creation facilities and finances its
credit creation from deposits. Therefore, the product can be classified into two major heading
i.e. deposits and loans. Remittance, SMS banking, internet banking, ABBS all from a group
of customer-oriented service that are aiding for MNBBL corporate image untrammelled
customer loyalty.

a. Deposits

MNBBL offers wide range of deposit products to its customers. The interest rates on
each deposit product depend upon the type of account. Customer can open any type of
account after fulfilling documentation procedures and submitting required documents. The
different types of deposit products offered by MNBBL:

1. Saving Deposits

There are a number of saving accounts in according with the type of customers. Saving
a/c are for those people who wants to save small amount of money from their regular income.
Interest is paid in saving a/c which is about 7% in this bank. The minimum balance of Rs 100
must be maintain by the customer in this account. Different types of saving account are
targeted for different customers and of different requirement. In this type of account
depositors can withdraw the deposit except minimum balance. Some features of saving
accounts are:

 Reasonable interest rate

 Affordable balance
 Unlimited withdrawal and deposits
 Free cheque book
 Free statement
2. Current Deposits

Current Account also termed as the Demand Deposit is maintained by the customers
who requires the money frequently. There is no any restriction on number of withdraw and
deposit. The balance in this account is non-productive for the bank since, it cannot be
utilized. So, the bank does not provide interest in this account. Current account in MNBBL is
mostly maintained by business enterprises. The minimum balance to be maintained in this
account is Rs.2, 000. Some features of current account are:
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 Withdrawal below minimum balance

 Extended banking hours in Kathmandu valley branches
 Minimum amount of deposit while opening account
 Free cheque book

3. Fixed Deposits

Fixed Deposit is the deposit account maintained with the bank for the stipulated period of
time by the customers. The amount cannot be withdrawn before the expiry date, but still if
they want to withdrawal they should pay penalty for early withdrawal or they can borrow
against their Fixed Deposit Certificates. This deposit account pay higher rate of interest than
saving account. Interest is depend upon the maturity period and total amount of money.
Interest is provided quarterly and tax is deducted at source from the interest. The amount of
interest on fixed deposit is transferred to saving account of the depositor. Some features of
this account are:

 Higher interest rate

 Fixed maturity period
 Convenient account opening
 Free cheque book
b. Loan

MNBBL offers loans and credit to the required following form:

● Business/ Industrial loan

● Personal loan

● Agriculture loan

● Housing loan

● Auto loan

● Share loan

● Hire Purchase loan

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● Real estate loan

c. Internet Banking

Internet banking enables a customer to do banking transactions through the bank’s

online portal. This is also known as net banking or Direct Banking. The internet has
dramatically changed the cost and capabilities of the marketing and distribution of new type
of products and services.

Muktinath Bikas Bank Limited’s customers will be able to conduct various informational and
financial transactions through the bank’s direct banking. This service currently includes the
following features:

Features

● Account Information

● Account Statement

● History of financial transaction

● Funds transfer to any account within the bank

● Merchant payments

● Utility Bill payments

● eSewa facilities

d. Mobile Banking

Muktinath Smart Mobile Banking provides convenient mechanism and quick access
to banking services for Muktinath Bank customers from their mobile devices. The popular
services are balance inquiries, recent transaction details, e-recharges and bill payment to
utilities like Ncell post-paid, Ncell prepaid, Top up, NTC ADSL, NTC landline and NTC
post-paid mobile phone bills. Muktinath Smart Mobile Banking integrated with Fonepay
enriches our customer with more enhance services like Interbank fund transfer, Muktinath
Bank merchant payments.

e. Auxiliaries
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Auxiliary services of banks are operations (services), which as a rule, are needed by
customers not by themselves, but as technologically necessary conditions for rendering them
basic, as well as some additional services. MNBBL provides following auxiliary services:

● Safe deposit vaults

● Application Supported by Blocked Amount (ASBA) service

● ABBS

f. ATM/ Debit Card

The Muktinath Visa Debit Card is a Debit card issued in collaboration with a principal
member of Visa International bearing Visa brand mark which can be used at a merchant
location to purchase goods and services through POS (Point of Sales) terminals and/ or ATM
terminals bearing Visa logo to withdraw cash. The MNBBL Visa debit card allows the
cardholder to withdraw cash, inquire account balance and to pay for purchases through POS
transactions.

g. Remittance

A remittance is money that is sent from one party to another. Broadly speaking, any
payment of an invoice or a bill can be called a remittance. However, the term is most often
used nowadays to describe a sum of money sent by someone working abroad to their family
back home. Muktinath Bikas Bank offers number of remittance products to cater the
customer need for transferring their money in and out of the country through:

● Muktinath remit

● Western Union

● Himal remit

● IME Pay

● City Express

Organizational Structure of MNBBL, Bhaisepati Branch

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Figure no 1: Organizational Structure of MNBBL, Bhaisepati Branch

Source: Internal Record of MNBBL, Bhaisepati Branch

Objectives of the study

The main objective of this internship program is to get better understanding of general
banking activities. The other specific objectives are as follow:

● To develop interpersonal communication skills and competencies.

● To explore the views of the customers and employees about their experience in the

bank.

● To analyse the scenario and implement the appropriate theoretical knowledge in a

practical manner.
Methodology
Methodology is the description of the procedure followed while collecting the
necessary data and information needed for research work and report preparation. Various data
were collected by observation, making inquiries with concerned staff members, quantitative
data was collected from the past records.

“Research includes any gathering of data, information and facts for the
advancement of knowledge.” (Martyn 2008),

The following sources are used in this study.

Primary Sources
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Primary sources refer to the raw data that have neither been processed nor
manipulated. It is information collected first hand from historical documents, experiments,
surveys and interviews which are as follows:

 Inquiry with staff members

 Notes made during the internship program.
 Personal observation
 Questionnaires with the customers
Secondary Sources

The secondary sources of data include the data that have been prepared by others, for
their use which are not original. Secondary sources are those sources that have been already
collected and readily available from other sources, which are as follows:

 Annual report
 Booklets
Selection of the Organization

With the aim of implementing my knowledge that I gained in college by doing

internship in the organization that is related to management field, I choose MNBBL as
organization for internship program. The bank was contacted by offering curriculum vitae
and recommendation letter from college.

Duration

The duration of prolonged internship was 12 weeks, started from July 5, 2022 A.D to
the date November 8, 2022 A.D. All the factors such as discipline, attendance, regularity,
interest towards the work, sincerity, behaviour and the efforts that I made to understand the
banking functions were closely monitored.

Observation
Functions of Customer Service Department (CSD)
For many banks, customers are valuable assets. This department is the sensitive part
of a bank as it interacts directly with customers. People come for various inquires about
banks, its new services. Here following activities are performed:

 Counselling the customers

 Interacting and communicating with existing and new clients
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 Opening new accounts for the new clients

 Making of cheques book and issue of cheque book to existing and new clients
 Printing financial statements for customers
 Scanning of account holders photos and signatures
 Checking accountholders customer balance, photos and signatures
 Handling telephones and use photocopy machine.
Details of the Assigned Work Responsibilities
The 12 weeks of internship was very important as per the activities performed. I was
placed basically at the CSD. Here, I performed the following activities under the supervision
of my supervisor:

a. Customer Dealing

Dealing with customer is the most important aspect of the CSD. The internee should
be polite to the customers and should try to solve the enquiries and doubts of the customers.

b. Balance Inquiring

The information regarding the balance is only provided to the account holder but if
the account holder is unable to come then he/ she can send his/ her representative with a
written application with the signature of the account holder and if the signature matches then
the information related to balance is provided. The MNBBL uses PUMORI software by
which the customers having accounts in other branch can also check their balance from any
branches.

c. Account Opening

There are various kinds of account opening facilities given by bank like saving a/c,
current a/c and fixed accounts etc.

Here, we help the customer by explaining about the types of services they need like
various types of services they need like various types of account opening facility, advantage
behind particulars account, fill up their forms who are unable to do so. Some of them are
mentioned below:

● Current Account
 15

Muktinath Bank’s current account saves the hassle of carrying around cash every month.
The account is non-interest bearing and it comes with a cheque book where customer just
need to write a cheque whenever and wherever it’s convenient.

A current account can be opened with a minimum amount of Rs.5000. The following are
the requirements to open a current account:

i. 2 copies of passport sized photo for each signature holder

ii. Photocopy of citizenship certificate of all signature holder
iii. Copy of PAN registration certificate
iv. Recommendation letter from the concerned VDC/ Metropolitan City to open an
account.
v. Copy of memorandum
vi. Minute containing decision of Board of Directors to open an account
vii. Stamp of the firm or organization

● Saving Account

In MNBBL, saving account’s interest is calculated on daily balance and credited to

customer’s account monthly, quarterly. Initial deposits upon nature of saving account.

Any balance below minimum amount will be liable to incidental charges as fixed by the
bank from time to time. Recent interest rate of MNBBL in normal saving account is 7%,
Sarvokrista Bachat Khata is 9% and so on.

The following are the requirements to open a saving accounts:

i. 2 copies of passport size photos

ii. Photocopy of Citizenship certificate and any one from these (driving license/
passport/ paid electricity bill/ PAN card)
iii. KYC for individual documents

d. Account Closing

Sometime customers’ close their accounts due to various reasons through they were
encouraged not to close. CSD would close their account on behalf of their request.

Procedures for closing account in MNBBL:

i. Providing the account closing form to the customer.

 16

ii. After filling the form, the staff of CSD verifies the account number, name, signature,
address and stamp of the firm, minute, letter (in case of current account)
iii. If all information in the form matches the account information then in order to close
the account, the account should be kept in rate/ limit maintenance.
iv. All unused cheques, ATM card should be returned to the bank
v. After receiving the cheques and ATM card, account is closed by giving the debit
voucher including the minimum balance, interest amount and tax amount with signs
and stamps of the bank for the further process in cash counter.

e. Statement Printing and Issuance

Statement includes the information like day-to-day transaction amount, balance,

interest charge, etc. It is free of cost. It is a frequent and regular activity done in the bank with
the help of software (PUMORI) given by the authority. Statement issuing is only provided to
the account holder but if the representative brings an application written by the account
holder then statement is granted to the representative after verifying the signature. If the
customer is asking for the statement of firm/ organization, then he/ she must bring the letter
with stamp and signature of all the account holders.

f. Balance Checking, Scanning and Photocopy

An internee was allowed to check the balance asked by customer under the
supervisor’s authority. An internee also learned to scan the forms before keeping the records
of new account holder or filing them along with some other important documents. Similarly,
photocopy was to be done frequently in the department, to provide ease to the customer.
Internee also learned how to contact with the customers through telephone.

g. Activating Blocked Accounts

The account will be blocked automatically if the account holder does not do any
transaction in the longer than 6 months. In order to activate the account, the account holder
should fill up dormant form which requires their names, account number, signature, address,
contact number, and stamp (in case of current account). After the form is filled, the account is
activated again. The account holder must deposit or withdraw certain amount on that same
day from their account to activate it.
 17

Problem Encountered During Performing Work and Fulfilling Work Responsibilities

While carrying out the task assigned by the supervisor, different types of problem were
faced. They are follows:

a. Some of the customer disagreed to concept the charges for account closing and make
argument on this matter for long time. So, it becomes difficult to convince them about
bank’s charges.
b. In spite of the instructions and required documents are clearly provided and explained
in the account opening form, the customers occasionally ask those for time to time
and reasons for extra documents that are already stated at back side of the form. So, it
is tough to give them each and every guideline and filling different types of form as
well.
c. The accountholder’s relation ask for the chequebook without bringing the letter of
authority and citizenship with accountholder’s valid signature and account number.
d. When the customers lost their chequebook and request for new one, in this case it is
difficult to find out all the used and unused cheques, valid signature and account
number from their records on the computer carefully.
 18

CHAPTER TWO

ANALYSIS AND REVIEW

Analysis of Data Collected on any Specific Issues

As I have done my internship in MNBBL for 12 weeks, I have got a huge chances to
observe all the activities, pros and cons of the bank. I was appointed in the CSD, where
usually I served the customers with the normal services. In the end of October, the IT
department of MNBBL has decided to upgrade the whole software system of the bank. For
that reason, the customers as well as the employees also faced severe problems for getting
services. During that period, I had realized and understood that the customer service and
satisfaction matters more accurately. This is why I have chosen my internship report topic on
Customer Service and Satisfaction.

Statistical Data and Analysis

To know the customer satisfaction level I had conducted a survey on the customers of
MNBBL. The employees and employers of MNBBL were also asked about their motivation
factors and contribution level. I asked them few questions and on the basis of their answers I
made these statistical data. Different groups had different opinions. Different thoughts about
MNBBL's customer service operation. During the survey customers also expressed the
problems faced by them in the bank. I have done this survey on 10-15 customers, 3
employers and 5 employees. I have followed Likert Scale method for my survey.

Observation during Bank

Customers:

A. Timely Service of the Bank

Nowadays people have more than one account in different banks. That is why they have
got a chance to compare different banks operation and service quality with others. When I did
the survey, I got to know the satisfaction level of customers. I have found that most of the
customers dissatisfied with the services provided by the bank.
 19

Figure no 2: Timely Service of the Bank

The figure illustrates that 50% customers were satisfied with timely service of bank, 20%
customers were neutral and 30% customer were dissatisfied. They were asked about the
timely service provided to them. The above chart describes that they were satisfied as well as
dissatisfied but they were quite happy with the service.

B. Precise Banking

From the survey the following figure is derived:

Figure no 3: Precise Banking

The above figure illustrates that 60% out of 100% customers were satisfied with
precise banking, 30% customers were neutral about it and remaining 10% were dissatisfied
 20

with precise banking of bank. We can say that customers find MNBBL efficient when it
comes to precise banking.

Employee:

A. Reward Scheme

Figure no 4: Reward Scheme

The above figure illustrate that 50% employees were highly motivated due to reward
scheme according to their work. 10% employees are neutral and remaining 30% were just
motivated in their work.

Better performance by employees was affected by the motivation factors. Employees

of MNBBL were asked few questions regarding their satisfaction level. One of the employees
said, "I really get motivated when the bank recognizes and appreciates my hard work. It
induces me to take my performance level even higher.”

From this analysis it is clear that employees were happy with the reward scheme in
MNBBL and they really appreciate the bank for recognizing them as devoted workers.
 21

B. Capacity Building Training

Figure no 5: Capacity Building Training

The above figure illustrate that 70% of employees were effective through capacity
building training. 10% of employees were neutral about it and remaining 20% employees
were not effective through capacity building training.

Employees were trained time and again according to the need of developing their skill
set and abilities. This training helps to build up their confidence and boost up their
performance level. It can be said that the employees are happy from the training provided and
find them really effective.

Employer:

A. Performance of Employees

Figure given below is the outcome of the analysis:

 22

Figure no 6: Performance of Employees

The above figure illustrate that 70% of employees performance were satisfied according to
the manager of bank. 10% of employee’s performance were neutral and remaining 20%
employee’s performance were dissatisfied to the manger.

It is the responsibility of an employer to boost up and give guidelines to their

employees. The performance of an employee shows his/her level of dedication and
determination in an organization. Few questions were asked to the employers of MNBBL, if
they were satisfied with the performance of the employees. One of the employers added, "I
must really say that my guidelines are not neglected and properly followed by the employees
and this really makes me happy."

We can say that the employers are satisfied with the level of determination and guidelines
being properly followed by the employees of the bank.
 23

B. Responsibility for the Overall Affairs of the Bank

Figure no 7: Responsibility for the overall affairs of the bank

The above figure illustrate that 70% of employees were responsible towards their
work in the bank. 10% employees were neutral and remaining 20% employees were
irresponsible towards their work.

Bank has to face certain as well as uncertain challenges and difficulties which widely
depend on how the circumstances are handled and managed. So, it is the responsibility of the
employers to face the challenges and solve them. Few questions were asked on how
responsible they feel when it comes to face contingencies. The above figure describes most of
them take the responsibilities on maintaining a stable and good balance to satisfy customers
while few stays neutral. One of the employers said, "We give our best to maintain a smooth
operation and to meet the need of the customer.”

From the remarks of employers, I can say that they are not irresponsible and can give
their best to overcome problems.
 24

Critical Analysis of the Theoretical Concepts

After the collection and analysis of the data. I performed critical analysis of the
theoretical concepts relating to my practical experience in the following context.

Communication Theory

Communication is the exchanging of information by speaking, writing or using some

other medium. It gives an explanation of the basic process individuals go through in order to
gain information and knowledge about other people. “Understanding Communication
Theory is an invaluable resource for undergraduate instruction. An organized, rigorous, and
accessible communication text, it is an excellent blend of conceptual and pragmatic
discussion. It will enhance the learning space for both student and instructor” (Stephen
2009)

This theory is applicable in MNBBL. I had observed that communication skills makes
people understand how to approach, talk, and respond to different people of different
backgrounds at the work place. I even found that being able to apply communication theories
to real life scenarios made me a better communicator.

Human Relation Theory

It is an approach to management based on the idea that employees are encouraged or

motivated not only by financial reward but also by a range of social factors like a sense of
belongings, feelings of achievement and pride in one’s work. The theory holds that attitudes,
relationships and leadership styles play a key role in the performance of an organization.
“The human relations theory of organizations has three main components. First, the theory
places an emphasis on the importance of an individual. A worker is not simply a cog in a
machine but an idiosyncratic individual who responds to his or her environment. Maximizing
the productivity of workers requires taking these individual characteristics into account.
Second, human relations theory takes into account the informal organizations in the
workplace. What is important to a worker and what influences her productivity level – may
not be the official organizational chart but her or his associations with other workers” (Grey
2009),

In MNBBL the manager encourage, informal relations along with formal relations.
Managers communication effectively without any feeling of ego and superiority complex and
also ensure the participation of staffs in decision making, when employees are involved in
 25

decision making they get chance to share their idea and they get chance share their graveness.
This environment create motivation to employee. This will increase productivity and job
satisfaction.

Knowledge Gain from the Work Assigned

Internship done under the requirement of PU to complete BBA has proved to be
effective way of studying. It helped me to get broader knowledge about the working as well
as banking environment. The internship was done for 12 weeks and I get an opportunity to
develop my interpersonal skills. This internship helped me to overcome my weakness.

I was placed in CSD where I got opportunity to get engaged with customers. The
activities of the CSD were very closely observed. CSD includes responding to customer’s
queries thoroughly, opening and closing of accounts, issuing cheque books, distribution of
ATM cards and many more.

In the context of MNBBL, it has got many old customers where most of them find
difficulties in banking procedures such as being unable to fill up the account opening form or
unable to fill up deposit voucher etc. For this, CSD has to play crucial role as a mediator of
customers and bank itself.

Lessons learnt in CSD are as follows:

 Since CSD directly interacts with customer, employees’ positive attitude and attention
towards customer is must.
 Learnt about various qualities such as sincerity, punctuality and confidentiality and
working under pressure.
 Account favourable to the customers were suggested through counselling.
 Learnt to deal with customers and observed their behaviour.
 Learnt how to cooperate in a team and get the work done efficiently.
 Technical skills like operating the bank’s software, ATM machine, photocopy
machine, scanner etc.
I believe I have achieved my internship objectives as targeted and planned. I was able
to the corporate work culture environment through managerial perspective, to cooperate and
comprehend the true concept of working with people in a team.
 26

SWOT Analysis
SWOT analysis of the bank is to evaluate the Strength Weakness Opportunities and
Threats involved in its business operation and identifying the internal and external factors
that are favourable and unfavourable to achieve bank’s objectives. Further major weakness of
the bank where bank has to work on for the improvement to increase the operational
efficiency and hence increase profitability has also been analysed.

Strength

When I asked about the strength of organization to manager, he said “we are able to
diversify products and services to our member as well as we have strong relationship with
the existing clients and also one of the good reputation company” Similarly, chairman of
MNBBL said “It is established with having well qualified and professional management
team and include large number of depositor.”

I agree with above statement said by the manager. I also have experienced this strength.
But these are not only the strength. Besides, I also found that all the employees are well
manner and hardworking. Everyone was helpful and supportive. It provides high interest rate
on saving accounts.

Weakness

The manager shared about weakness of MNBBL. He said, “Sometime we can see the
problems in software system, we have the limited number employees as well as limited
financial capacity and old technology system are used.”

I have experienced these weakness but further more according to my analysis I found that
it uses old software like PUMORI. It has limited number of staffs.

Opportunities

When I asked manager the question that I have prepared on opportunity, he replied
me that “It can take advantage of its good reputation and further expand its customer base
as well as it can come up with new innovative products and services.”

According to the working experience, I also have experience these opportunities in

the future prospective.
 27

Threats

When I asked about threats to the manager, he said “Due to outbreak of threatening
diseases we are not having much new customers as past, increase number of competition,
new products and services from another finance and political problems”.

According to my observations these are not only the threats to MNBBL, further there are
many threats that I observed are most of the people take the loans for their own needs but
most people do not use to pay the loan amount on time. Even though some people do not pay
neither interest nor principal of loan. This reflects the huge amount of loss on the company.
They lack the international account opening systems.
 28

CHAPTER THREE

CONCLUSIONS AND RECOMMENDATIONS

Conclusions
Internship has been incorporated as integral part of BBA program, which provides
student as opportunity to familiarize with organizational culture and develop managerial
skills exposing oneself to the real life functions of the business organization. The internship
period is an exciting phases of a student’s life. It is not just a requirement to pass exams and
get a degree, but it is a period where one builds professional contacts, learning the art of
listening and observing. After preparing this report, it has been concluded that the internship
program conducted as the partial fulfilment of requirement for BBA programs has been
worthwhile in achieving its objectives of providing the practical application of the theoretical
knowledge.

During the internship period it was got to apply our theoretical knowledge into the
real practical environment. This internship started from customer service department of
MNBBL with different activities. Such as it was learnt about tackle with customer, fill up the
firm, open account in PUMORI software, cheque disbursement, ATM registration and
distribution etc.

Being in MNBBL Bank, it was got to be familiar in MNBBL environment in their

culture about what should do and what shouldn’t do activities with different department,
greeting system etc.

Contribution of Internship in knowledge Gain

Muktinath Bikas Bank Limited culture is built on set of core values: client focus,
teamwork, meritocracy, ethics and integrity, pioneering. The company is committed to its
clients’ best interest as well as preserving a good relationship by defining realistic objectives.

The most important lesson learnt during the internship period was the working procedure
of the bank. The 12 weeks training period has been proved very valuable and helpful in
learning interpersonal skills, analytical skills and technical skills.
 29

Moreover, it gave the opportunity to have a practical exposure to the banking

environment. During internship at MNBBL, various lessons were learnt. They are as follows:

 Learned about the importance of time, personality and dedication towards work.
 Learned about the procedure of cash deposit and withdraw.
 To be socialized with the professionals.
 Better communication skill has been developed after interaction with various
officials of the bank as well as with the members.
 Learned to deal with different people at different point of time.
 Developed the intrapersonal, managerial and entrepreneurial skills that are crucial
in every professionals and employees career development.
 Learned about the procedure in account opening and closing of the individual or
the corporate.
 Learned about the procedure of balance enquiries and account statement.
 Learned to be calm under the adverse conditions and tactfully handle the
complexities and handle the grievances.
 Got familiar with organizational culture, ethics that helped to build up confidence
beside this I also learn.
General Comments and Recommendations
Since the establishment of Muktinath Bikas Bank Limited, it has aimed to become the
leading bank of Nepal by that provides outstanding services to its customers. Furthermore, as
the bank is growing, new and more energetic employees are entering which is sure to
invigorate the performance of the bank.

Lastly, to become the leading bank of Nepal, Muktinath Bikas Bank Limited has to
benchmark its services to its major competitors in the industry or the market leader in the
industry and provide a continuous mean of improvement in its existing products and services,
while introducing new ones to the industry. Some recommendations are as follows:

● More number of computers is required in the CSD to overcome the rush inside the

department.

● Parking facility for the vehicles in the branch should be provided.

 30

● MNBBL should concentrate on better logistics like better maintenance of printer,

good paper quality for cheques, good UPS etc.

● Information should be timely conveyed to customers regarding any change in

regulations.

● Bank should also increase the number of ATM booths within and outside the valley.

● During the rush hour bank seems much crowded so management should make a

proper space and fast working procedure to handle those issues.

● Special customer information desk should be highly recommended because all the

customers are not educated and seems confused about where the services will be
delivered.
 31

REFERENCES

BAFIA, (2063). Banks and financial institution Act. Nepal Rastra Bank.

Goldthwaite, R.A. (1995). Banks, Places and Entrepreneurs in Renaissance Florence.

https://doi.org/10.1086/ahr/91.5.1299

Grey, C. (2009). Studying organizations. SAGE Publications.

Shuttleworth, M. (2008). Definitions of Research. Explorable.com.

Stephen, W. (2009). Communication theory. SAGE publication.

 32

JOURNAL

Day 1

My first day at MNBBL was not certain at all. I got a call from the bank at 10:30 am
and I was asked to visit the Branch manager for my second interview. I went on rush and
reached there at 11:00 am. I waited for my turn and CSD Mam allowed me to enter the
branch manager’s cabin. We had interaction about banking rules and regulations. He told me
about my duties and responsibilities. Around 11:30 am I was placed in a cabin near Customer
Service Department where she told me about products and services and its interest rates. She
also helped me how to deals with customers and how to speaks in telephone. By the time it
was 3:00 pm I little bite learned how to deal with customer. At 04:30 pm Branch manager
told me to sign on my attendance as a completion of day one. By the time I finished all the
procedures and came out it was 05:00 pm.

Day 2

Second day in the organization, I reached sharply at 10:00 am. That day I was so
excitement and nervous thinking how they would treat me. I greeted all the staff of the
organization. They were very happy for me to contribute as much as I wanted to, and were
open to any suggestions and ideas that made me comfortable. CSD Ms. Shubechha Thapa
Magar taught me about the activities I had to do and instructed me how to interact with
customers and communicate with customers on the day. I learned about the filling the form of
account opening and the necessary documents for opening. I also learn about account opening
and closing in PUMORI. At 5 pm I exit from the organization.

Day 30

As always I do my work. Many customer know about me and give their feedback
about my work. Today ma’am teach me to filling the documents of the customers according
to the client code. Ma’am teach me how to print statement, cheques and remittance. At same
day ma’am also teach me to scan signature of the customer. I also learn about the Fixed
Deposit. How pension renew in the system.
 33

Day 45

My performance of activities was getting better day by day. I was slowly

understanding the environment of the organization. I performed all the work which was given
to me. I felt comfortable with them. I asked questions when I have some difficulty to do that
work. They made me suitable environment and gave information about all work which is
performed in CSD department. On that day, I was given chance to perform activities like
entry all the customer information and detail in excel sheet. And also learn issue cheque to
customer.

Last Day

On the last day of my intern I was felling happy and sad to, because it was my last day
in the bank. Every staffs of the bank was very much helpful and become familiar with the
working culture and environment of the bank. I reached the bank at 10:00 am. Right after
reaching there I went to attend myself at the attendance register. By the time I came down
there was already few customers on line for their cheque books, balance enquiry etc. I turned
on my computer and started printing balance statements and issuing cheque books. During
the work one of the customers requested me to print his balance statement and I asked his
account number but he told me that he doesn’t remember and requested me to search by his
name. There were a lot of customers behind him and they started getting angry as his account
wasn’t available. I requested him kindly to bring his cheque book along or else it could take
a lot of time but he didn’t care and shouted at me to get his work done quickly. I became
quiet and patient and started to search by his name. Then after few minutes his account was
finally available and I printed his balance statement. It was a new experience for me as
someone yelled at me for his own fault but I was happy that I deal it with patience and
calmness. By the time of 3:45 pm we stated to print cheque books and record the opened that
day. All staff of MNBBL were not feel so good because they were satisfied to my work. At
the time of 4:45 they celebrate my farewell and cut the cake and enjoy and Branch Manager
Mr. Sampurna Maharjan gave me internship completion letter. I quite serious after that.
Reflecting back to my working days, it was awesome and most memorable days in my life.
 34

APPENDIX 1

1. How do you motivate your employees?

2. What strategies have you applied to stay ahead in this competitive market?
3. What are your strategies for providing better services to customers?
4. How responsible do you feel pertaining to the performance of the employees?
5. What do you think what are the strengths of our organization?
6. What do you think what are the weaknesses of our organization?
7. What do you think what are company’s opportunities in market?
8. What are the biggest threats to our organization in competitive market?
 35

APPENDIX 2

1) Are you happy with the ATM service of the bank?

 Very happy
 Happy
 Neutral
 Disappointing
 Very disappointing

2) Do you think the baking procedures are easy?

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

3) Are you satisfied with the timely service?

 Satisfied
 Neutral
 Dissatisfied

4) Are you satisfied with the current interest rate?

 Satisfied
 Neutral
 Dissatisfied

5) Do you consider this organization fruitful to the career?

 Strongly Agree
 Agree
 Neutral
 Disagree
 36

 Strongly Disagree

6) How much effective do you find Capacity Building Training provided by the bank?

 Very Effective
 Effective
 Neutral
 Not Effective

7) Are you satisfied with the reward scheme?

 Satisfied
 Neutral
 Dissatisfied