CHAPTER-1

INTRODUCTION

1.1 General Background

Bachelor in Business Administration (BBA) program is the undergraduate level program

of Tribhuvan University (T.U). It is a four year course with 120 credit hours comprehensive
bachelor degree program .It is further divided into eight semester (two semester in each
year).It is mainly practical oriented which emphasizes to provide student a practical
knowledge. It aims to prepare students to become competent, confident, skilled and socially
responsive professional who can effectively support managerial, entrepreneurial and
leadership role in business and social organization. It is student oriented course where
students should be actively participated. Its syllabus has been designed in such a way that
it has tried to give student knowledge from almost every field like psychology, sociology,
business law, Information Technology(IT) etc. It has got grade system of marking in GPA.
Due to this distinctiveness BBA program is getting popular among the students and is
becoming the first choice of every students of management field.

In the course study of BBA program students are required to do the internship in their
specialized field. Internship is simply the applied form of knowledge. It is relatively short
term in nature with the primary focus on getting some on the job training and taking what’s
learned in the classroom and applying it to the real world. The management knowledge
will not remain only in theory but practical utilization of the theoretical knowledge is done.
As per the requirement of TU’s BBA, internship is done in any financial institutions for
the duration of eight weeks which creates an opportunity to observe, learn and understand
the corporate culture, acquire knowledge and skills in the respective field that help the
students in their career development. Internship reinforces and strengthens the students’
personal values and career objectives.

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This is a report on the Customer Service and Clearing Department of Everest Bank Limited
as one of the leading Commercial Bank of Nepal, as mentioned earlier, and since intern
had completed internship from the Everest Bank Ltd at Thamel Branch Office all the details
related to the Customer Service and clearing function is based on that particular branch.

1.2 Objectives of the study

The general objective of the study is to present the practical insights about the banking
activities and to identify the various activities done under Customer Service and Clearing
Department. Besides this, the specific objectives are as follows:
➢ To develop interpersonal communication skills
➢ To explain the knowledge about the financial institution and its daily workings in a
practical scenario.
➢ To observe and learn the activities performed in Customer Service and Clearing
Department.
➢ To gain knowledge about various documents and procedures required for account
opening and closing.
➢ Learn about clearing of cheques in the bank.
➢ To know how to deal with the customers in the bank.

1.3 Methodology

The internee’s study is completely based on observation and learning that he/she got in
various departments of Everest Bank Limited as an intern for the period of two months.
During this period the internee learnt about the procedures inside and outside the
department and how they are managed. However, for the purpose of report preparation,
both the primary and secondary sources of data helped the internee to explore with the
valuable information required during the internship. 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:

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1.3.1 Organization Selection
The most important and the initial part in the internship program is the selection of the
organization. It is the basis from which interns get the platform to learn something and In
this competitive market it is not an easy task to find intern in the reputed organization.
Campus provided recommendation letter which internee dropped in the Human Resource
Department (HRD) of Everest Bank Limited along with the CV. There were other
numerous applicants applying for their internship. So it was a tough job for HRD Head to
select few amongst all. There was regular follow up calls to the HRD which revealed
interest and enthusiasm to work in EBL. After a week internee was informed that internee
was selected and could start internship period. Finally, internee joined the bank as an intern
from June 22, 2017.

1.3.2 Placement
On 22nd June, 2017 internee was placed to EBL Thamel, Branch office to start his
internship. There, the internee met branch manager and was asked to meet Officer In charge
and as per her order internee was placed in customer service department for five weeks
under the supervision of CSD supervisor. After the completion of five weeks in CSD,
internee was referred to the Clearing department for rest remaining three weeks under the
supervision of clearing supervisor.

1.3.3 Duration of internship

The duration of internship period has been defined for 8 weeks by Tribhuvan University,
so as per the specified period, intern worked in EBL Thamel branch from 22 June, 2017 to
18th August, 2017. Internee thought those eight weeks were really fruitful and it will
definitely help in upcoming days. It was the internship program that helps to internee to be
familiar with the organization culture, work environment and working procedure of the
EBL. The placement of internship is shown in the table below:

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 Table 1.1
Duration of Internship

Activities/Weeks 1 2 3 4 5 6 7 8

CSD
Clearing department

1.3.4 Activities Performed in the Bank

1. Customer service department
• Account opening (Personnel and Corporate).
• Issuance of Debit card and cheque book.
• Account closing.
• Balance inquiry and other information about the bank service.
• Providing information about products to the customers.
• Issuing of account statements and balance certificate.
• Solving the queries of the customers.
• KYC update and verification.
• Providing the service of signature change, SMS Banking or E-Banking if needed by
the customers.
• Writing the applications as instructed by the supervisor on behalf of the customers.

2. Clearing department
➢ Physical examination of the cheque.
➢ Endorsing the cheque.
➢ Providing a copy of deposit voucher to customer.
➢ Entering the cheques in OBC (Outward Bills Collection) register.
➢ Scanning the cheques through ECC.
➢ Forward inter-bank cheques to head office.
➢ Inform the customer about the returned cheques.

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 ➢ Keeping record of clearing cheque as well as returned cheques.

1.4 Limitation of the Study

Every field of study has some or the other limitations and so in the case of internship report
as well .There is some limitations that are faced at the time of report preparation and they
are as follows:
➢ The study is limited to only one financial institution.
➢ It does not give detail view of overall functioning of the bank.
➢ Lack of adequate time to learn, complete and detailed works in just eight weeks.
➢ This report is prepared on the basis of available data and the information provided
by the bank and its staffs.

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 CHAPTER 2

INTRODUCTION OF THE INDUSTRY

2.1 Introduction of Banking Industry

A Bank is a depository financial institution which purchases money and sells money for
money. In this way, a bank is a sensitive sector of the industry because it plays with the
public money. The primary operating activity of any bank is to collect fund in the form of
deposit from the surplus sector of the economy and transfer this collected fund to the deficit
unit of the economy in the form of loans. The benefit that the surplus unit gets by depositing
their access fund in the bank and the charge that the deficit unit pays for using the fund of
the bank are both expressed in percentage and that rate is known as the interest rate. The
difference between the lending interest rate and borrowing interest rate is called interest
spread and this spread is the major source of income of any bank.

In simple, bank is an institution which deals with money and credit. A bank is a financial
institution that serves as a financial intermediary, who bridges gap between the savers of
the fund and users of the fund. Bank exists in the economy to perform the function of the
intermediary. Banks intermediates not only the surplus and deficit units but also perform
various management activity to create a balance in the economy. It should perform the size
intermediation because in general surplus units are large in number but they less amount
of surplus funds and the opposite scenario is of the deficit side. Similarly it should perform
the maturity and information intermediation as per the requirement.

2.2 History of Banking

The concept of banking is not a modern concept. This concept had started to evolve in the
brilliant human mind immediately after the humans were able to realize and develop
money. Though money had made the human life much easier than before but ancient
humans started to realize the complexities that evolution of money had created in their life.
So, in order to overcome these complexities and the difficulties that were attached with the

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benefit of money the concept of banking emerged in the human mind. Earlier the
moneylenders and the landlords perform the banking activities as the informal banks but
later the activities of these people are formalized and the concept of bank as an institution
had emerged.
Moving towards the word “Bank”, it is thought to be derived from the Italian word
“Banco”, Latin word “Bancus” and French word “Banque” because all meant the bench in
which the bankers would keep money and its records. The Jews of Lambardy were thought
to be the early bankers who transacted third business at the benches in the marketplace and
when they were unable to meet their liabilities, the depositors used to break their benches
and this tradition had given birth to a banking term “Bankrupt”.The first ancient Bank of
the world is supposed to be the Bank of Venice which was established in 1157 A.D.
Following the footsteps of this bank, other two banks were established in 1401 and 1407
named Bank of Barcelona and Bank of Geneva, respectively. 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 experienced various ups and downs but still they persisted and because of that
persistence they are now able to exist in this 21st century world as one of the essential
element of human life.
Presently, banks are not only the deposits collecting and loan lending institutions but also
the institutions which helps its customers from various ways as per their convenience and
ability with full security. They had been developed as the essential service providing
institutions in this rushing world. Hence, banking had become an important element of the
world economy in the present time.

2.3 Evolution of Banking Industry in Nepal

The history of banking in Nepal is believed to be started from the time of Prime Minister
Ranoddip Singh in 1877 A.D. He had introduced many financial and economic reforms.
For the purpose of providing credit facilities to the general public at a very concessional
interest rate, he established Tejaratha Adda. It disbursed credit to the people on the basis
of collateral of gold and silver. All the government employees were also eligible for this

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type of loan, which was settled by deducting from their salary. Tejaratha Adda only
expanded its credit facilities to its customers but did not accept deposits from its customers.

Banking in modern sense started with the inception of Nepal Bank Limited (NBL).Nepal
Bank Limited was established in 1994 B.S, as a semi-government organization without
existence of a central bank in the country under special Banking Act 1936, having
elementary functions of a commercial bank. 51% of the paid up capital of Nepal Bank
Limited is owned by the Government and 49% owned by the public. Later, on Nepal Rastra
Bank was set up on 2013 B.S. as the first central bank under Nepal Rastra Bank Act 2012
B.S with an objective of supervising, protecting and directing the functions of commercial
banking activities. Another commercial bank fully owned by the government, “Rastriya
Banijya Bank” was established in 1996, which made it possible for the Nepal Rastra Bank
to devote more attention to the important aspects of economic, monetary and fiscal
development. Industrial development center was set up in 2013 B.S it was converted into
Nepal Industrial Development Corporation. Agricultural Development Bank established in
2024 to finance agricultural produces.
Joint venture banks in Nepal gave a new horizon to the financial sector of the country.
Nepal Arab Bank Limited later renamed as Nabil Bank Limited in 2041 B.S as a first joint
venture bank to be a milestone in the history of banking which gave hope to the sluggish
financial sector.
After the restoration of democracy in Nepal there has been tremendous development in
banking sector. The economic and financial reform policies undertaken by the government
have increased both number of banks and the types of services offered. The category of
banks in the context of Nepal are shown in the table.

Category Component Minimum paid up Number

capital requirement
KA Commercial Banks 8 billion 28
KHA Development Banks 500million - 2.5billion 57
GA Finance Companies 400million – 800million 36
GHA Micro Credit institutions, Co-operatives 20million – 100million 47

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Since the interne had completed the internship in one of the commercial bank of Nepal, the
analysis is specifically focused on the “KA” category depository institutions i.e. the
Commercial Bank.

2.4 Introduction of Commercial Bank

Commercial bank acquires funds one group of surplus spending units and makes these
funds available to other deficit units. It provides transactional, savings and money market
accounts and that accepts time deposits. Commercial banking may also be seen as distinct
from retail banking, which involves the provision of financial services direct to clients. The
powers are available to commercial banks by seeing the sources and uses of funds available
to the typical bank. An institution which accepts deposits, makes business loans, and offers
related services. Commercial banks also allow for a variety of deposit accounts, such as
checking, savings, and time deposit. These institutions are run to make a profit and owned
by a group of individuals, yet some may be members of the Federal Reserve System. While
commercial banks offer services to individuals, they are primarily concerned with
receiving deposits and lending to businesses. Because of being the member of the central
bank, the scheduled commercial banks enjoy a strong and financial goodwill which attracts
huge amount of deposits industrialists, traders and the public at large. Commercial Banks
extend various types of credit facilities to their constituents, to enable them carry out their
business activities.
Nepal bank limited is the first and oldest commercial bank of Nepal that was established
in 1937 A.D. However, the second Rastriya Banijya Bank came in operation in 1966 A.D.
in particular; commercial banks can help a firm speed up the collections as well as delay
its cash disbursements. The first joint venture bank was established in 1984 A.D. The
commercial banking sector accounts for 53 percent of total financial system assets when
NRB is included - and 74 percent if NRB is excluded. Rastriya Banijya Bank and Nepal
Bank Limited dominate the commercial banking sector, holding around about 60 to 65
percent of total commercial banking system assets.

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 Commercial Banks perform an array of functions. The commercial banks are those banks,
which are established to accept deposits and grant loan to the industries, individual and
traders with a view to earn profit. Apart from financing, they also render services like
collection of bills and cheques, safekeeping of valuables, financial advising etc. to their
customer. These functions can be systematically categorized as follows:-

1. Primary Functions

The primary functions of a commercial bank include:

➢ Accepting deposit
➢ Advancing loan
➢ Discounting bill of exchange
➢ Transfer of money

2. Secondary Functions
The secondary functions of a commercial bank include:
➢ Issuing letters of credit, travelers' cheques, circular notes etc.
➢ Undertaking safe custody of valuables, important documents, and securities by
providing safe deposit vaults or lockers.
➢ Transferring money from one place to another and from one branch to another
branch of the bank.
➢ Standing guarantee on behalf of its customers, for making payments for purchase
of goods, machinery, vehicles etc.
➢ Collecting and supplying business information.
➢ Issuing demand drafts and pay orders and
➢ Providing reports on the credit worthiness of customers.
Thus, the primary and secondary functions performed by bank are the essential to meet the
overall objectives of the bank.

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 CHAPTER 3

INTRODUCTION OF THE ORGANIZATION

3.1 An Overview of Everest Bank Limited

Everest Bank Limited (EBL) started its operations in 1994 A.D with a view and objective
of extending professionalized and efficient banking services to various segments of the
society. The bank is providing customer-friendly services through its Branch Network. All
the branches of the bank are connected through Anywhere Branch Banking System
(ABBS), which enables customers for operational transactions from any branches.
With an aim to help Nepalese citizens working abroad, the bank has entered into
arrangements with banks and finance companies in different countries, which enable quick
remittance of funds by the Nepalese citizens in countries like UAE, Kuwait, Bahrain, Qatar,
Saudi Arabia, Malaysia, Singapore and U K. Bank has set up its representative offices at
New Delhi (India) to support Nepalese citizen remitting money and advising banking
related services.
Punjab National Bank (PNB), the joint venture partner of Everest Bank (holding 20%
equity in the bank) is the largest nationalized bank in India. With its presence virtually in
all the important centers at India, Punjab National Bank offers a wide variety of banking
services which include corporate and personal banking, industrial finance, agricultural
finance, financing of trade and international banking. Among the clients of the Bank are
Indian conglomerates, medium and small industrial units, exporters, non-resident Indians
and multinational companies. The large presence and vast resource base have helped the
Bank to build strong links with trade and industry.
Recognizing the value of offering a complete range of services, EBL has pioneered in
extending various customer friendly products such as Home Loan, Education Loan, EBL
Flexi Loan, EBL Property Plus (Future Lease Rental), Home Equity Loan, Vehicle Loan,
Loan Against Share, Loan Against Life Insurance Policy and Loan for Professionals.
EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in Nepal.
EBL has introduced Mobile Vehicle Banking system to serve the segment.

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 3.1.1 Networks

Everest Bank Limited (EBL) provides customer-friendly services through its wide
Network connected through ABBS system, which enables customers for operational
transactions from any branches. The bank has 61 Branches, 80 ATM Counters, 5 extension
counter & 29 Revenue Collection Counters (as on Sept 5, 2017) across the country making
it a very efficient and accessible bank for its customers, anytime, anywhere.

3.1.2 Performance

The below table shows the performance of EBL from fiscal year 2067 to 2072
which shows the business in

Table no. 3.1

Performance of EBL (on the basis of business)

Business:
(Rs.In crore)

Particulars 2067/068 2071/072 2072/073 Increased Over

(2010/11) (2014/15) (2015/16) Previous Over

Year % 5 year’s

period %

Deposits 4112.79 8309.37 9373.55 12.81 127.91

Loans and 3105.77 5448.25 6795.51 24.73 118.80

Advances

(Source: Annual Report 2010/11, 2014/15, 2015/16)

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 Table no. 3.2

Performance of EBL (on the basis of profit)

Profit: (Rs. In crore)

Particulars 2066/067 2071/072 2072/073 Increased Over

(2009/10) (2014/15) (2015/16) Previous Over

Year %
5 year’s

period %

Net Interest 179.52 287.94 322.86 12.13 79.85

Income

Operating 151.67 225.26 266.61 18.36 114.94

Profit

Net Income 93.13 157.44 173.02 9.9 85.78

After Tax

(Source: Annual Report 2010/11, 2014/15, 2015/16)

The above tables show consistent progress of the Bank over the last five years.
During the year under review, Everest Bank has earned operating profit of Rs. 266.61
crore which is (18.36%) more than last year and has been able to post a after tax net profit
of Rs. 173.02.44 crore, which is 9.9% higher than the last year. The total deposits have
reached Rs. 9373.55 crore recording an annual growth of 12.81%. The loans and advances
stood at Rs. 6795.51 crore showing an annual growth of 24.73%.

Directors are glad to report that with the present proposal being placed to the shareholders
for approval of issuing 30% Bonus Shares, the Bank’s Paid Up Capital will cross Rs.
262.26 crores. Nepal Rastra Bank has issued guidelines to make up the paid up capital of
Rs. 800 crores by Ashadh 2074. With increase in profit, the bonus provision at 10%,

13
payable to the employees has also gone up to Rs. 22.47 crores which was Rs. 22.16 crores
in the previous year. The income tax liability also has gone down to Rs. 64.88 crore for the
year from Rs. 67.35 crore for the previous year.

3.1.3 Awards
Since EBL is one of the renowned institution among the various financial institution of
Nepal. The awards received are as follows:
➢ The bank has been conferred with the "Best Managed Commercial Bank" by
ASIAN PAINT NEWBIZ Award 2013.
➢ The bank adjudged as "Number 1 Bank" under CAMELS (along with Customer
Base & Branch Network) rating conducted by KAROBAR national daily (a leading
business media house of Nepal).
➢ The bank has been conferred with “Bank of the Year 2006, Nepal” by the Banker,
a publication of financial times, London.
➢ The bank was bestowed with the “NICCI Excellence award” by Nepal India
chamber of commerce for its spectacular performance under finance sector.

3.1.4 Pioneer Achievements

The pioneer achievements of EBL are:
➢ EBL was one of the first banks to introduce Any Branch Banking System (ABBS)
in Nepal.
➢ EBL has introduced Mobile Vehicle Banking system to serve the segment deprived
of proper banking facilities through its Birtamod Branch, which is the first of its
kind.
➢ EBL has introduced branchless banking system first time in Nepal to cover
unbanked sector of Nepalese society.
➢ EBL is first bank that has launched e-ticketing system in Nepal. EBL customer can
buy yeti airlines ticket through internet.

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3.1.5 Vision
➢ To evolve & position the bank as a progressive, cost effective & customer friendly
institution providing comprehensive financial and related services.
➢ To integrate the frontiers of technology & serving the various segments of society.
➢ To be committed to excellence in corporate values.

3.1.6 Mission
➢ To provide excellent professional services & improve its position as a leader in the
field of financial related services.
➢ To build & maintain a team of motivated and committed workforce with high work
ethos.
➢ To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.

3.1.7 Objectives
➢ The objectives of EBL are listed below:
➢ To become the bank of first choice.
➢ To bridge the gap between saver and borrowers efficiently and effectively.
➢ To provide the higher expected rate of return on investment.

3.2 Organization Structure of Everest Bank Limited

The structure of EBL lies in between bureaucratic and organic structure with departments,
which also has the provision of job rotation, job enrichment and job enlargement and
decision making authority being centralized.There are eight board of director in EBL. The
chief Executive Officer of EBL is Mr. P.K. Mohapatra. Under the General Manager there
are two Deputy General Managers – Mr. H.P. Kulkarni and Mr. Hum Nath Gurung. And
under them there are different departments who have to report to them such as Marketing,
Human Resource, Credit Department, IT department and so on.

15
 Figure 3.1:

Organization Structure of Everest Bank Limited (Head Office)

Board of Directors

Chief Executive Officer

General Manager

Deputy General Manager Deputy General Manager

Account Marketing Human Credit

Dpt Dpt Resource Dpt Dpt
Legal
Dpt
Treasury Customer-
Dpt Service Dpt

Remittance IT, Planning and General

Dpt Development Dpt Adminstration Dpt
(Source: www.everestbankltd.com)

Organization structure shows authority responsibility relationship in any organization. It

makes clear about reporting relationship in an organization setup. It also makes clear
exactly how many departments or functional areas are there in the organization. The
organization structure of the bank also does the same. Each functional department of EBL
looks after their own area of activities with sound and effective capabilities assisting the
bank to achieve its objectives.

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3.3 Shareholder Structure
The local Nepalese promoters hold 50 percent stake in the bank’s equity, while 20 percent
of the equity is contributed by joint venture partner PNB who has also undertaken
management responsibility under a Technical Service Agreement (TSA). The remaining
30 percent is held by the general public. This is shown in the following table:

Table 3.3
Shareholder’s Structure

Group Categories % of holding

A Nepalese Promoters Ownership 50%

B General Public 30%
C Joint Venture (Punjab National Bank, India) 20%
Total 100%

3.4 Product and Services Provided by EBL

EBL offers a wide variety of products and services, catering to wide range of customers
from individuals, to mid market local corporate to multinationals and large public sector
companies, as well as embassies, aid agencies, airlines, hotels and government
corporations.
Everest Bank’s policy is to extend quality services to its customer as properly as possible.
Bank’s policy is to extend quality services to its customers as properly as possible.
Personalized services are provided to all clients. To extend more efficient services to its
customer, EBL has adopted innovated and latest banking technology. Everest Bank tailors
the facilities extended to its clients, taking into account their need and requirement, besides
the normal services, EBL has been providing the following services to their customers. In
many of these services, EBL has the pioneer.

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1. Deposit
EBL offers a wide array of deposits schemes in both local and foreign currencies to help
the customer earn competitive interest rates in order to maximize returns on investment.
Some of the deposits schemes are as follows:
➢ Current account
➢ Saving account
The types of saving account are: normal saving, naari bachat khata, saving premium
account, baal bachat khata, saugat bachat khata and freedom saving account.
➢ Fixed deposit account
The types of fixed deposit account are: supreme deposit, cumulative deposit scheme, cash
certificate scheme and unfixed fixed deposit scheme.
➢ Recurring deposit account
The types of recurring deposit account are: sunaulo bavisya yogana and flexi recurring
deposit account.
➢ FCY deposit account
The types of FCY deposit account are: USD account and EBL NRN deposit account.
➢ Retirement plan account

2. Loans and Advances

EBL provides credit on competitive terms by way of term loans as well for financing
working capital needs of all kinds of productive and income generating activities.
Regarding Consumer Lending Schemes it has following major schemes:
➢ Direct Housing Loan
➢ Vehicle Loan
➢ Education Loan
➢ EBL Property Plus
➢ Professional Loan Scheme
➢ Loan Against Mortgage
➢ Loan Against Share
➢ Home Equity Loan

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3. Trade Finance Activities
The bank provides their customer with letters of credit and guarantees, etc facilities to
facilitate their business transactions.

4. Remittance Facilities
Remittance can be made to any part of the world by way of SWIFT Transfer instantly in
addition to the conventional facilities like demand drafts, Travelers’ cheques etc. EBL has
drawing arrangements with about 130 branches all over India for remittance to India. EBL
facilitates both Inward and Outward remittance.

5. Foreign Exchange Facilities

The bank provides facilities for financing the export and import business, exchange (sale
and purchase) of foreign currencies, forward exchange contracts, etc.

6. Cards and ATM’s Facilities

EBL debit card is a plastic card which provides an alternative payment method to cash
when making purchases or cash withdrawal from ATM centers. It is associated with Smart
Choice Technology (SCT), it facilitates wide sharing of ATMs under SCT network from
more than 650 Locations throughout Nepal. EBL debit card holder can also have the
withdrawal facility from over 5000 PNB ATM in India.

7. E-banking Facilities
EBL offers E-banking facilities too. Through a computer connected to the Internet,
customer can log on the Everest Net Site and do various banking transactions from
anywhere at any time.
Internet Banking
It is used for:
➢ Account summary/ Statements
➢ Balance Inquiry
➢ Fund Transfers
➢ Offline Requests (Cheque books, remittance etc.)

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 ➢ Ordering for different types of payments

8. Safe Deposit Locker

For locker facility some steps to be followed:

➢ The customer must maintain an account with bank.

➢ Identification documents must be submitted with filling locker form.
➢ Deposit should be maintained.

Everest safe deposit locker ensured that your most precious, be it jewelry,
passport, share certificate are secured in our world class Safe Deposit Locker from fire and
theft. There are three sizes of locker; they are LARGE, MEDIUM, and SMALL. The cost
is 3500, 2500, 1500 accordingly.

9. Other Facilities

The bank provides other facilities like merchant banking activities, underwriting of
public issues, demat account opening, standing instructions, electronic cheque clearing
service, e-banking services, mobile banking services, sms alert on each transaction etc.

These above mentioned are the basic products and services that are offered by the
Everest Bank Limited for the convenience to it’s customers.

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 CHAPTER 4

ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED

4.1 Customer service department

As an intern, it was indeed a great opportunity to know about the banking activities in
depth. The internee was rotated through various departments of the bank, which exposed
him to the real world of the bank and observed the real operations of the bank as the internee
had only the theoretical knowledge. It has to communicate with the people, give
information about the bank and its services to them.
Customer service is a series of activities designed to enhance the level of customer
satisfaction that is, the feeling that a product or service has met the customer expectation
and the Customer Service Department (CSD) means the front desk of any organization that
enables face to face interaction with the customers who visits the organization. For any
organization it is the very place which makes an early impression to the clients. The image
and the reputation of bank depend upon effective functioning of this department.

4.1.1 Roles at CSD

During internship the internee was allowed to use FINACLE software. And most of the
works were handed by the supervisor to him so that he/she can learn properly. Basic
activities performed by the internee in the Customer Service Department are as follows:

1.Account Opening

During the internship period intern was placed in Customer Service Department thereby,
helped customers in opening accounts. Therefore, performed the following functions:

➢ Provided the account opening form

➢ Provided the information on minimum balance requirement and the interest rate in
various schemes
➢ Verified the attached documents
➢ Prepared the voucher for deposits
➢ Opened the account in FINACLE

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Documents to be enclosed for Account Opening
The documents needed for the account opening varies from one account to another account.
The individual needs less document but a corporate organization needs more documents
and more formalities too. The documents needed as per account can be shown as below:

a) Current Account
It is an account on which any amount deposited can be withdrawn through a cheque. It is
also known as checking account. It consists of:

i. Proprietorship Account:

A business firm registered in the name of a person/proprietor is known as Sole

Proprietorship Firm. The proprietor bears all the profit or loss of the business.
Requirements for opening proprietorship account:

➢ Registration Certificate
➢ Tax Certificate
➢ Citizenship Certificated Proprietor
➢ 2 PP size photos

ii. Partnership Account

A firm registered in the name of more than one individual is known as Partnership firm.
The profit and loss from the business operation is shared by the partners. Requirements for
opening partnership account:

➢ Partnership Agreement deed

➢ Firm Registration Certificate
➢ Tax Certificate
➢ Citizenship Certificate of Partners
➢ PP size photos of partners

iii. Limited Company Account

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Limited Company Account can be maintained by both private and public limited
companies. Requirement for opening proprietorship account are:

➢ Registration Certificate
➢ Memorandum & Articles of Association
➢ Name, Address of directors & Office Bearers of the Limited Company with copy
Citizenship Certificate
➢ Name & Signatures of the Persons Authorized to Operate an account
➢ Operation Commencement Certificate (for Public Ltd. Co.)
➢ Resolution of Board of Directors regarding opening & conduct of an account
➢ Tax Certificate

iv. Club Society & Association Account

Various clubs, social institutions, etc can also open accounts by fulfilling the requirements.
Requirements for opening this account:

➢ Registration Certificate
➢ List of Office Bearers
➢ Resolution Regarding Opening & Conduct of Account.
➢ Name & Signature of the persons authorized to operate the account.

b) Saving Account
Basic requirements for opening Personal Account
➢ Citizenship Certificate or Passport.
➢ 2 PP size photos.
Basic requirements for opening Joint Account

➢ Documents certified from concerned Embassy.

➢ All documents required for personal account for all joint parties.
➢ Special instruction must be provided to the bank in the application form in case of
any one signature among the joint account holders.
➢ ATM/Debit Card is not provided to joint account holders.

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2. Account Closing
As per the request of the customer, account closing is also performed. For this account
closing form should be filled by customer who is examined by staff and forwarded for
verification. As per the rule of bank, certain balance is deducted as closing charge and
remaining amount is refund to the customer.

Following functions are performed for it

➢ Provided the account closing form
➢ Known the reason for closing the account
➢ Verified the signature
➢ Ensured the unused cheques, used ATM card are returned back to bank
➢ Finally handled the documents to the authorized personnel

3. KYC Update
Customer Id of existing customers are updated in the system if any changes have been
made by the customers. For updating their general details, they come to the bank to fill a
Cust. Id form with the new changes and such changes are updated from time to time.

4. Provided Safe Deposit Locker

For locker facility some steps to be followed:
➢ The customer must maintain an account with bank.
➢ Identification documents must be submitted with filling locker form.
➢ Deposit should be maintained.

Everest safe deposit locker ensured that your most precious, be it jewelry, passport, share
certificate are secured in our world class Safe Deposit Locker from fire and theft. There
are three sizes of locker; they are LARGE, MEDIUM, and SMALL. The cost is 3500,
2500, 1500 accordingly.

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5. Issuance of Account Statement and Balance Certificate
The account statement and balance certificate is provided to the customer on the demand
basis. Statements should be collected by account holders of person assigned by the
customer. Fee is not charged for statement but for balance certificate fee is charged.

6. ATM Card Issuance

ATM card is issued to the customer after completing the account opening process.
Maintained registered, verified and entry in Finnacle is made and then ATM is given to
customer. Basically Rs200 is charged for ATM cards.

The individual customers having Saving Account, Current Account and Saving Premium
Account maintaining the minimum balance is eligible for the EBL Debit Card. An EBL
debit cardholders could draw cash from PNB ATMs in India with withdrawal charge of
NPR 160 per transaction and charge of NPR 24 per balance inquiry. The maximum limit
of withdrawal per transaction is NPR 16,000 and per day limit is NPR 16,000 (In India),
whereas monthly limit is NPR 160,000. Similarly, a PNB debit cardholders could draw
cash from EBL ATMs in Nepal with withdrawal charge of INR 50 per transaction and
charge of INR per balance inquiry. In Nepal customer can withdraw Rs100000 in a day.

7. Cheque Book and ATM Delivery

The cheque books are prepared after making the entry of account opening in computer
system. The customer can collect their cheque book only next day after giving request for
cheque book. Respective customer should be presented for taking cheque book for first
time issue and for ATM they must be compulsorily presented.

8. Dealing and Handling Customer Grievances

The overall functioning of this department is concerned with dealing with the customer and
handling their grievances. People with different queries and problems come in the bank. In
my stay at this bank I handle different types of problems of the customer related to loss of
cheque book, debit card, forgetting of PIN No. and so forth.

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9. Use of Office Equipment
Various office equipment are used like photocopy machine, cheque writer, printer, fax
machine, ECC machine etc for various tasks.

10. Other Activities

Mainly the activities related to providing effective services to the customer are done.
Besides that other activities like cash sorting, telephone handling, filing, clearing
preparation etc are done. During his stay the internee was able to perform various task
assigned by the supervisors.
Thus, various activities are done which helped the internee to enhance the skill in dealing
with customer, answering their queries and handling their grievances. It helped to develop
the managerial attitude and behavior to carry out managerial function in future.

4.2 Clearing Department

Clearing is a process by which a banker exchanges cheques drawn against another bank
and deposited at their bank for collection or clearance from their customer at the clearing
house. Customers deposit cheque, drafts in their accounts, which are drawn on various
banks and bank serves their customers by helping them collect the fund in their account
through clearing function. Fund realized and credited in customer’s account next working
days.

4.2.1 Roles at Clearing

The internee carried out following activities while clearing outward cheques
deposited by customers:-

1. Physical Examination of the cheque

To check whether a physical cheque given by the customer for clearing is genuine or not
following points must be concerned:

➢ Ensure the date is in correct manner and valid

➢ Ensure that the cheque is signed

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 ➢ Ensure that the amount in words and figures are matching
➢ Ensure that the beneficiary name is written and correct stamps are placed if
necessary
➢ Ensure that the cheque is not stamped more than two times and cleared stamp
doesn’t exist already

2. Endorsing the cheques

The cheque that needs to be cleared needs an endorsement stamp after checking that all
features are present and there is the validity of that cheque. Likewise, stamp of cheque
presentment is to be placed on the back side of the cheque before scanning.

3. Providing a copy of deposit vouchers to customer

Internee should provide a copy of deposit slip to the customer after stamping on the deposit
voucher receiving the cheque. In case, the cheque is returned by NRB, the customer should
come with the same slip to collect the cheques.

4. Entering the cheques in Outward Bills Collection(OBC) register

The cheques were entered serially in the OBC register mentioning all the general details of
the cheque so that the cheques are not misplaced.

5. Scanning the cheques through ECC

The electronic images and MICR data of cheques would be captured using scanners by the
presenting bank. Prior to scanning, the presenting bank should send this electronic image
of the cheque along with the relevant information like MICR code line data, date of
presentation, presenting bank, etc. to the clearing house.

6. Make a list of returned cheques with reason

If any cheque is returned by NRB, it is the responsibility of the internee to make a list of

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returned cheques with beneficiary name and reason for the return. The cheques are
generally returned due to following reasons:-
➢ If the amounts in words and figures are not clear
➢ If stamp needed is not present
➢ Insufficient balance
➢ Stop payment order

7. Inform customers about returned cheques

After the customers are informed about their returned cheques, they are kept in a box
arranged according to the list until the respective customer arrives to collect the cheque
with the deposit slip provided to them earlier. The slip is taken and matched with the
deposit voucher with the bank. Then the cheque is provided to the customer taking a
signature of the receiver in the register.

4.3 Problems Identified and Solved

During the internship program, although EBL is able to meet the changing need of
customers. In spite, of that some problems have been analyzed and best suitable measures
have been taken to minimize the problem and solved them while at EBL. Following are
some of the problems faced during internship:

1. Communication Problem

Most of customers are locals with minimum education qualification. They don’t have
proper knowledge regarding the terminologies used in different forms, vouchers etc. as
forms are printed in English languages.

Solution: To solve this problem as an intern they were clearly made understood about the
terminologies used by translating in simple and understandable language, which help them
to fill up the form correctly and within short period of time.

2. Grievances Handling
It is most important problem among the problems. If it is not handled properly, it directly

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affects the bank image, as a result customers are dissatisfied. They will stop transacting
with the particular bank and switch to other bank which are eagerly waiting to provide
them service.
Solution: To solve this problem customer service department can play the important role,
as this department is mainly in interaction with their customers. So, as a staff at CSD inter
interacts with customers by being keenly interested in listening their grievances properly
and to try to solve them. If the problem is critical then it should be forwarded to CSD head
for solutions.
3. Hesitations of Customers

It is one of the problem faced by most of the bank nowadays. It is difficult to identify since
it is related with psychology aspects of customers. Some customers hesitates to convey
their problem to the related staff. For eg. Sometimes if customer do not know how to feel
up the forms or even if they have to ask a piece of a simple information, they prefer not to
inquire about it. The bank cannot read the mind of each and every customer who visited
the bank.

Solution: To solve the problem taking initiation to ask customers regarding their problem
frequently and create the customers friendly environment so that they will feel at ease and
themselves convey their problems.

4. Unsystematic Handling of Things

Unsystematic management leads to failure. Unsystematic handling of thing is also a

problem. It is not a big problem, but if it is not managed properly and timely it directly
affects the efficiency of banking activities.

Solution: To manage this problem things were managed in a systematic way, so they are
readily available wherever needed creating a mark to efficiency.

For e.g. Ay CSD cheques order request are taken and they are issued. Main problem was
that when the customer visits bank and request for their cheque books, it would take a long
time to search for the dissatisfaction. To dandle this problem cheques were alphabetically
arranged in a date wise format. Issued chegues of the particular date were tagged with the

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similar date and kept in one side. This leads to increase efficiency and customer does not
have to wait for long.

5. Work Load Problem

At the opening and closing time work load is high. So, sometimes it is difficult to provide
immediate service to customers, which leads to dissatisfaction of customers.

Solution: To solve this problem, increase in the numbers of working hands directly helps
to reduce the work load. At the same time more customers are facilitated with banking
facilities, which directly benefited the bank.

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 CHAPTER 5

CONCLUSION

5.1 Conclusion:
Commercial Bank in Nepal could be viable only if they could provide maximum qualitative
services to the customer of the bank who is the main source of income for the banks.
Without the customer no bank can fulfill its objectives. To maintain the standard of the
bank it should always look for measure to adapt to changes to a better level.

In customer service department, the internee had worked for seven weeks. It is the place
where most of the interns were placed for a longer period of time. The reason is there comes
more people for their various purpose like account open, getting their ATM Card and
Cheque book, giving requisition slip for the new cheque book, renewal of ATM card and
fixed deposits, for bank statement and e-banking, etc. During his internship what she
observed is, to work at CSD they must be very fast in working and well informed about the
product and services of the bank, similarly we must have good communication and
interpersonal skills as people of different nature arrive there. Some people don’t want to
wait for a minute; they want quick service, some want to get service first. So to manage all
the issue we must have good communication skill and interpersonal skill.

CSD contributes to adding value to the performance, worthiness and reputation of the bank.
Internee was able to use FINACLE Software to open different accounts, issue cheque
books, print statements, communicate with different people to solve their queries, arrange
documents to facilitate proper way of filing, scan documents, sending mail to ATM
department to block ATM cards of customers as per their request, etc. At EBL on average
25 accounts used to open and only 2-3 accounts used to close.

While concluding this report, the internee is intensely satisfied with the internship and its
outcome. This experience will not only be beneficial today but also in the future also when
the interne should work in the real life. The experience of internship was incredible which

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 boosted the confidence level and enhanced inter-personal communication skills of the
internee. It developed interaction skills and shaped up personality too.

5.2 Lesson Learnt

“Practice makes a human practical and perfect”. The eight weeks internship period in EBL
has taught many lessons. Intern have learnt different skill and obtained a variety of
knowledge during his internship period. Internship for 8 weeks really taught many things
which have been listed below:
➢ Learned to tackle the various problems of the customer.
➢ Learned to prepare and issue cheque books and activate the debit card.
➢ Learned to be self-confidence to contact with the customer and make them feel
comfortable in every way.
➢ Internee experienced that the real working environment and managerial practices
are different from theories learned.
➢ Using various office equipment like photo copy machine, scanner, printer, etc.
➢ Gained basic knowledge on operating FINACLE software of EBL.
➢ The document needed in the bank i.e. for opening or closing the account, changing
the signature, transfer the amount etc.
➢ Importance of the time management and the need of the communication skills are
very much needed.
➢ Readiness to work and showing and ‘never say no’ attitude are the keys towards
success.
➢ Discipline and punctuality while working in bank.
➢ Learned to make effective communication skill for quick and efficient service.
➢ Learned to understand different types of stamps that were in use. They were so
called crossed stamp, bank’s stamp, endorse stamp and paid stamp.
➢ It was the great chance to be familiar with the use of Finnacle Software that helped
a lot in maintaining the proper balance in the overall activities of the bank. In case
if it failures, the whole activities of the bank comes into halt creating the huge loss
to the bank.

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Thus, In conclusion throughout the internship period intern learnt and develop to use
theoretical knowledge in the practical business world. Hence, internship in EBL not only
gives an insight to learn about how the bank performs interbank transactions in Nepal, but
also boosts our future prospects in the banking sector as well.

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