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Submitted By:
Submitted To:
Office of the Dean
Faculty of Management
Tribhuwan University
RECOMMENDATION
This is to certify that the fieldwork assignment report
SUBMITTED BY:
RAVI SHRESTHA
Exam Roll No: 6770-09
T.U. Registration No: 7-2-388-81-2009
Entitled:
An Internship Report on
Himalayan Bank Limited
_____________________
MR. Sharad Sigdel
Internship Report Supervisor
DECLARATION
__________________
RAVI SHRESTHA
BBA 2009-2013
Roll No.: 6770/09
TU Reg. No.: 7-2-388-81-2009
ACKNOWLEDGEMENT
First of all, I would like to express my deep gratitude to Tribhuvan University for
including such a wonderful program as part of the curriculum for Bachelor in Business
Administration. This opportunity helps to extend my theoretical knowledge to the real
world.
I also would like to thank management of Kantipur College of Management and
Information Technology for the guidance in the preparation of this report.
My Appreciation also goes to the Himalayan Bank Limited for providing me with the
opportunity of doing internship in their renowned organization. The whole family of
Himalayan Bank has supported me in coping with the surroundings and helped me to
learn various things during the duration of Internship.
I would like to offer my heartfelt appreciation to my report supervisors Mr. Sharad
Sigdel and Mr. Aman K.C. for their entire guidance, valuable suggestions,
encouragements and support throughout this report.
My Appreciation also goes to the Himalayan Bank Limited for providing me with the
opportunity of doing internship in their renowned organization. The whole family of
Himalayan Bank has supported me in coping with the surroundings and helped me to
learn various things during the duration of Internship.
Lastly, I would like to give gratitude to my family members and friends for their moral
support throughout the report. Without their support, I never would have completed
my report so effectively.
Ravi Shrestha
TABLE OF CONTENTS
Title
Page No.
Cover Page
Recommendation Letter
Internship Completion Letter
Declaration
Acknowledgement
List of Tables
List of Figures
Abbreviations
1-3
1.3 Methodology
1.3.1
Organization Selection
1.3.2
Placement
1.3.3
Duration
1.3.4
4-8
9-15
9
10
10
11
11
3.5.1 Products
12
3.5.2 Services
13
14
15
16-34
16
16
20
21
21
22
22
25
26
26
27
27
29
30
30
31
31
33
34
34
35-36
5.1 Conclusion
35
36
Bibliography
Annex
LIST OF TABLES
Table
Title
Page No.
2.1
3.1
Share Ownership
11
4.1
24
LIST OF FIGURES
Figure
Title
Page No.
1.1
3.1
12
3.2
13
3.3
Services of HBL
13
ABBREVIATION
A.D.
Anno Domini
ATM
BBA
B.S.
Bikram Sambat
CAP
CEO
CIB
CLR
CSD
DAP
Dept.
Department
ECC
etc.
Etcetera
FOM
Faculty of Management
GDP
HBL
HMG/N
Intl
International
i.e.
That is
KYC
LC
Letter of Credit
NGO
NRB
ROA
Return on Assets
ROE
Return on Equity
RM
Relation Managers
SMS
SWIFT
TU
Tribhuvan University
CHAPTER ONE
INTRODUCTION
1.5 Background of the Study
Internship program has been designed for the partial fulfilment of the degree of
Bachelor in Business Administration (BBA). BBA is a program launched by
Tribhuvan University (TU) under the Faculty of Management (FOM), with eight
semester's provision covering an international standard period of four years. It covers
class lectures, group discussions, case studies, seminar, practical exercises, project
work, term paper and internship. BBA is a broad education program to prepare the
students for much advanced middle level leadership in both private and public sector.
The purpose of the program is to develop and strengthen the students knowledge and
skills. With regard to this, FOM has combined internship with the course and make it
compulsory for the time period of two months.
An internship is a directed, practical learning experience, outside of the normal
classroom setting, in which students sharpen skills, gain experience through work on
advanced productions, apply classroom learning to professional settings or projects,
and learn firsthand how professional companies or organizations operate. The
internship exposes the students interpersonal relationships that a job requires.
This report is based on the two month internship experience and knowledge gained on
the internship time duration. It mainly focuses on the job done by the intern and
experienced gained. It also includes the things which intern has seen during the period.
1.7 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, different websites, annual report of
Himalayan Bank Limited (HBL), etc.
1.3.2 Placement
Intern had been placed in the different departments during the duration of the
internship as per the culture of Himalayan Bank Limited. Intern had worked for the
time interval of two months and spent different time periods in different departments
like customer service, remittance, international banking and credit. Intern had worked
with full enthusiasm and confidence in the entire department.
1.3.3 Duration
The duration of internship period has been defined for 8 weeks or 6 credit hours (i.e.
96 hours of working time at any financial institution for finance specialization
students) by FOM, TU. Intern had the opportunity to work for two months starting
from 15th of May to 14th of July. The intern had been placed in various departments and
the duration of time interval in those departments are shown in the following figure:
Figure 1.1: Gantt Chart of Duration of Internship
Department
Primary Data
The primary data were collected from day to day activities, discussion and information
provided by the different officials of various departments.
Secondary Data
The secondary data were collected from the various sources like annual report,
broachers, official websites and other publications.
interval.
The interpretations are made under personal judgment, which is not guided by
CHAPTER TWO
INTRODUCTION OF BANKING INDUSTRY
2.1 Introduction of Banking Industry
A bank is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of
deposits and it lends money to those who need it. In other words, the bank is the
institution that makes money in terms of receipt of income and payment of
expenditures and deposits. So, the bank creates credit by providing loans to individual,
traders and businessman. The bank also receipt deposits from the customer to
safeguard it and promise to repay at the time of their need. Interest is provided for the
money deposited and taken on the loan provided by the bank.
The function of the bank is changing day by day. The development of new services by
the banks around the world is changing the definition along with it. Initially, the banks
are considered as the institution that only takes deposit and lends money to the needed
persons. But, the services have been innovated to the whole new level. Now-a-days,
the bank provides an easy way to pay bills through the maintained account. Not only
that, they provide many services such as accepting various deposits, making different
kinds of loans, providing means of payment, electronic banking, and other services
such as travellers cheques and money orders.
An establishment authorized by a government to accept deposits, pay interest,
clear checks, make loans, act as an intermediary in financial transactions, and
provide other financial services to its customers. Business Dictionary
So, the bank can be described as the financial institution whose major function is to
provide the loan and to deposit the money from the people along with providing the
various financial services to their customers.
is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating
continuously since 1472.
The development of banking spread from northern Italy through Europe and a number
of important innovations took place in Amsterdam during the Dutch Republic in the
17th century and in London in the 18th century. During the late 18 th century, J.P.
Morgan and Company emerged at the head of the merchant banks and nearly created
the monopoly in the market. Later, the panic in the collapse of the share end that era.
Then, the struggle continues until the World War II as it saved the banking industry
from complete destruction. It lifted the downward spiral of the banking sector as the
billions of dollar is needed for the war. Later the 2007-08 financial crisis caused many
bank failures, including some of the world's largest banks, and provoked much debate
about bank regulation.
Although history has altered the fine points of the business model with the modern
telecommunications and computing mechanism, the banks will never stop to perform
this primary function.
Bank of India who circulated the Nepalese currency as well as Indian currency in the
Nepalese economy.
A decade after the establishment of NRB, Rastriya Banijya Bank (RBB), a commercial
bank under the ownership of His Majestys Government of Nepal (HMG/N) was
established. Thereafter, HMG/N adopted open and liberalized policies in the mid
1980s reflected by the structural adjustment process, which included privatization,
tariff adjustments, liberalization of industrial licensing, easing of terms of foreign
investment and more liberal trade and foreign exchange regime was initiated. With the
adoption of liberalization policy, there has been rapid development of the domestic
financial system both in terms of number of financial institutions and as ratio of
financial assets to the GDP.
Types of Financial
Institutions
Commercial Banks
10
13
17
27
31
32
Development Banks
26
79
87
88
Finance Companies
21
45
60
79
79
69
Micro-credit Development
11
18
21
24
19
20
15
16
16
47
45
38
36
Banks
Saving & credit cooperatives
NGOs (Financial
Intermediary)
Total
5
7
44
98
181 263 272 265
(Source: Bank and Financial Institutions Regulation Department, NRB)
Central Bank
Commercial Bank
Development Bank
Exchange Bank
Saving Bank
EXIM Bank (Export & Import Bank)
Co-Operative Bank
Other
o Labour Bank
o Regional Bank
bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs.
For the development of the commercial sector it provides different facilities like
capital, information supply, etc.
Commercial bank means a bank which operates currency exchange transactions,
accepts deposits, provide loan; performs, dealing, relating to commerce except the
banks which have been specified for the co-operative, agricultural, industry of
similar other specific objective. Section 2 (a) of Commercial Bank Act 2013
B.S.
There are some functions of commercial bank and they are:
There are currently 31 commercial banks licensed by NRB in Nepal. The detail of
their establishment date and paid up capital are given in Annex I.
CHAPTER THREE
INTRODUCTION OF ORGANIZATION
3.1 Introduction of Himalayan Bank Limited
Himalayan Bank Limited (HBL) is one of the largest and reputed private sector banks
of Nepal. The Bank was incorporated in 1992 by a few eminent individuals of Nepal in
partnership with the Employees Provident Fund and Habib Bank Limited of Pakistan.
The bank commenced its operations in January 1993. Himalayan Bank is also the first
commercial bank of Nepal with most of its shares held by the private sector of Nepal.
Besides commercial banking services, the bank also offers industrial and merchant
banking service. Despite the cut-throat competition in the Nepalese Banking sector,
HBL has been able to maintain a lead in the primary banking activities- Loans and
Deposits.
Legacy of Himalayan lives on in an institution that's known throughout Nepal for its
innovative approaches to merchandising and customer service. Products such as
Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme
besides services such as ATMs and Tele-banking were first introduced by HBL. Other
financial institutions in the country have been following HBL lead by introducing
similar products and services. Therefore, HBL stand for the innovations that it brings
about in this country to help its Customers besides modernizing the banking sector.
With the highest deposit base and loan portfolio amongst private sector banks and
extending guarantees to correspondent banks covering exposure of other local banks
under credit standing with foreign correspondent banks.
All Branches of HBL are integrated into Globus (developed by Temenos), the single
Banking software where the Bank has made substantial investments. This has helped
the Bank provide services like Any Branch Banking Facility, Internet Banking and
SMS Banking. Living up to the expectations and aspirations of the Customers and
other stakeholders of being innovative, HBL very recently introduced several new
products and services. Millionaire Deposit Scheme, Small Business Enterprises Loan,
Pre-paid Visa Card, International Travel Quota Credit Card and Consumer Finance
through Credit Card are some of the products and services. HBL also has a dedicated
offsite Disaster Recovery Management System.
Looking at the number of Nepalese workers abroad and their need for formal money
transfer channel; HBL has developed exclusive and proprietary online money transfer
software- HimalRemitTM. By deputing HBL staff with technical tie-ups with local
exchange houses and banks, in the Middle East and Gulf region, HBL is the biggest
inward remittance handling Bank in Nepal. It shows that HBL has an outside-in rather
than inside-out approach where Customers needs and wants stand first.
HBL has established a strong network over the country by using its branches. HBL is
aiming for increasing its perimeter by covering area as much as possible. Every year,
HBL is increasing its branches and moving towards its aim. Currently there are 41
branches altogether in and outside the valley. The detail list of branches is shown in
Annex III.
As on July, 2012
Share Capital
80.00
1,920,000,000
65.00
1 ,560,000,000
15.00
3 60,000,000
2. Foreign Ownership
20.00
480,000,000
Total
100.00
2,400,000,000
1. Domestic Ownership
1.1 Nepal Government
1.2 "A" Class Licensed Institutions
1.3 Other Licensed Institutions
1.4 Other Entities
1.5 General Public
1.6 Others
Deposit Scheme are being provided by HBL. Besides these, ATMs services, Internet
banking and SMS banking are some of its services along with HimalRemit services are
being provided to its customers. Small Business Enterprises Loan, Pre-paid Visa Card,
International Travel Quota Credit Card and Consumer Finance through Credit Card are
some of the other products and services.
3.5.1 Products
Figure 3.1: Deposit Products of HBL
Deposit Products
Term Deposits
Saving Deposit
Current Account
Loan Products
Corporate Loan
Funded
Loan
Credit
Financing
Retail/Consumer Loans
Project / Consortium
Non Revolving Cash
Working Capital
Overdraft Facility
Demand Loan
Revolving
Demand Loan
Short Term
Demand Loan
Revolving Cash Credit
Import Credit for Telex
Transfer and Demand
Draft Payment
Trust Receipt Loan
Export Credit Facilities
Pledge Loan
Clean Bills purchased
and
discounted
Documentary Bills
Purchased
and Discounted
Non-Funded
Letter of Credit
Bank Gurantee
3.5.2 Services
Figure 3.3: Services of HBL
Small and
Medium
Enterprises
(SME) Loan
Services
Locker
Internet Banking
SMS Banking
Credit Card
Debit Card
ATM Service
Remittance Service
International Banking
Travel Cheque
Weakness
Qualified employees
Policy making
ATM service
Extra Charges
technology
Branch Coverage
Innovation
Remittance service
Opportunity
Favourable law for the banking
sector
Increasing remittance market
Increasing knowledge of banking
sector to general public
Threats
Political instability
Domestic conflict
Limited resources
Threats of new entrance
Threat of substitute
Rivalry among existing firm
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
4.1 Customer Service Department (CSD)
Customer service department is most important department to develop the good
impression to the customer. CSD also known as the front desk helps the customer to
solve their query. Customer Service is the commitment to providing services to
external and internal customers, including providing information, technical support
and quality of services in a timely manner.
Customers are the main wealth of the organization. A loyal customer always uses the
product and services of the bank without looking into the other alternatives. Thats
why loyal customers are the main source of success of the organization. Its the duty of
the CSD to maintain the relationship with the customers and make them loyal to the
organization.
CSD performs various tasks in day to day operation. The basic tasks of CSD are
account opening, account closing / transfer, ATM card issue, cheque issuing, bank
statement issue, balance certificate issue, and many more.
of form along with the cheque slips (if any) by the customer, the intern had to write the
information on the register about the customer and reasons to close or transfer the
account. These reasons help the bank to improve their services in future. Then the
intern had to put cancellation stamp on those cheque slips and register it into different
register.
The further process is done by the officer to close or transfer an account and then inter
had to visit different departments (cash, remittance, letter of credit, credit and locker)
to make sure everything is clear to close or transfer that account.
Preparing Cheque book
Intern had to prepare the cheque book according to the request of the customer. The
responsibility of the intern is to fill up the new cheque requisition slip and tear the
cheque slips from the printer. Then intern had to make sure that the number in the
cheque requisition slip and the cheque slip are same. After that, intern had to place the
cheque slip in order and bind it with the cheque cover. During the process, the new
requisition slip must be placed carefully between the cheque slips and intern had to
remember the total number of cheque slips and had to calculate where to put that
requisition slip. Intern also had to search the cheque book from the box at the time of
issuing the cheque book.
ATM Card Distribution
ATM card distribution is one of the day to day activities that an intern had to do in
CSD. The intern searches the ATM card of the customer who asks for it. If the card is
found then the intern had to search the document related to the card. Then its the duty
of inter to request the customer to fill out form of acknowledgement of card receipt.
The intern had to check if there is copy of identification or not; if not, then the intern
had to ask for it and have to photocopy it to attach with the form. The intern also had
to check if the customer is taking new card or replacing old with new; if the customer
is replacing then the inter also had to ask for the old card and then punch the hole after
the process. After that, inter had to enter the data in the register and pass it to the
officer for the further process.
ATM Pin Distribution
Due to the system change, HBL had updated the pin number of all the ATM card
holders who had the expiry date above June 2016. Below that date, the customers have
to replace the card. So due to this reason, the customer regularly comes in the HBL
New Road branch to ask for their pin number. And it is the intern who had to provide
them the pin number after searching the pin in the pin collection box. The intern
requests the customer to fill out the form of acknowledgement of pin receipt and asks
for their identification to attach along with the form after the copy. Then, the intern
had to register the data in the pin register and pass it to the officer to issue it.
Printing Bank Statement
Bank statement is the list of transaction that has been occurred during the certain
period of time. Intern had to request the customers who are interested in printing out
their bank statement to write their account number, date from which the statement is
required and their signature. Intern first had to check their account number and their
signature because the statement is only provided to the account holder. Then, intern
should the print the statement from the date they have asked for using the T24
software.
Balance Check
Many customers frequently ask for the balance in their account and the amount in the
cheques they are holding. So, intern had to check the balance by entering the account
number in the respective search heading of the software. Intern can tell the amount to
the account holder. Intern cant tell the amount of the account to the person holding the
cheque but can tell if there is sufficient amount in the account or not to withdraw the
cheque.
Signature Verification
Sometimes intern had to check the signature in the different forms. Intern also had to
check the signature of the cheque on the request of the customer and sometime when
the customer forgets their signature.
Handling Phone Calls
Handling phone calls are as important as handling the customers face to face. Through
phone calls, the customers ask many different questions and require different
information. Intern had the responsibility to handle the phone calls and solve the query
of the customers. If intern doesnt know the answer then intern had to pass the call to
the officer.
difficult to understand while filling the form. The intern had identified that some of the
forms contain the technical words and terms which causes confusion in customers
mind.
ATM Problem
During the internship period, intern had identified that large number of customer
complained about the ATM service. The customers main complaint is about the ATM
card process during the transaction. The other problems related to ATM are time
duration to get new card, lack of information on card receiving and time period to
collect the card.
Lack of Brochure
Many customers want the brochure during their visit in the CSD to know about the
different accounts, there features and the interest rates provided in them. But, due to
the regular change in the banks interest policy, intern had identified that there is lack
of proper updated brochure in the department.
Helping the customer to fill out the different forms and describing the
complicated terminologies.
Describing different accounts along with its features and interest due to the
lack of brochure.
Informing the problem that raise during the interaction with customers to the
authorized person for the solution.
inexperienced intern. Intern generally handles the entire customer with the same
magnitude and style despite the difference in the attitude of the customer; while,
employee handles the customer differently every time according to the attitude and
behaviour of the customer. Intern had analyzed that how difficult it is to do the
simplest of thing when the pressure of the workload increases. Intern had also seen
that the software layout that uses in the bank is different according to the position of
the employee. Intern had learnt that due to the simplest of mistakes there can be huge
problem during the operation. Intern had also recognized the importance of the
hierarchy in order to work and solve the problem.
During the internship period, the intern had seen huge difference in number of
employees in the CSD and the changes that occurred due to that fluctuation in number.
The bad impact due to the crowded CSD and the lack of employees in some period
had been seen by the intern and recognized the importance the need of the best number
of employees that works efficiently.
Providing LC to Applicant
After the arrival of original copy of LC, its the duty of intern to provide the duplicate
copy of LC and the original LC opening advice. First, intern had to check the terms
and condition of the LC to know if insurance copy is necessary or not from the
applicant. If yes, then intern had to ask for the insurance copy and check the
information with the LC. If everything is correct or insurance is not needed, then the
documents are provided to the customer under the supervision of the officer in charge
of document of LC.
Filing
Intern had to do the filing job on a day-to-day basis. Intern had to store and retrieve
different type of files according to the requirement of the employees. The files are
stored on the basis of LC numbers which are provided according to the nature of
transaction and the currency used for transaction.
Data Entry
Intern had to enter the different types of data on the different register. While opening
the LC intern had to enter the record of new LC opening in the register according to its
country of business and currency. Intern also had to enter the data of the documents
arrived in the department. The information of the LC is written in the two different
registers specifying its main points. The documents that are known as document
against payment (DAP) and DAP are also registered in the same register but after
registering the document the new file is created for those transactions. During the time
of internship, the number of data entered by the intern in different register is given
below:
Table 4.1: Number of Data Entry Done by Intern in International Banking
Register for
Document Received
LC Opening for Nepal
LC Opening for India with Indian Currency
LC Opening for India with USD
LC Opening for 3rd Country (Except Nepal & India)
Total
Number
90
3
14
8
33
148
(Source: HBL)
Photocopying
Intern had to do photocopy of different types of document. The documents like
original copy of LC, LC opening advice, Bi. Bi. Ni. Form number 4, and few other
have to be photocopied during the internship period of intern.
Handling Phone Calls & Fax
This dept. is the first place where all the calls of the bank arrive and then the calls are
transferred to their specific places. Intern had the responsibility of handling the phone
calls in the absence of the employee or if employee is busy doing their task. Intern first
had to ask about the nature of the call and then transfer it the necessary place. Intern
also had to handle the fax machine. Inter had to handle every incoming fax and
transfer it the necessary problem.
Scanning
Intern also had to scan the documents and then had to send it to the necessary person
through the mail.
instrument.
Informing about the lack of new files in the dept. to the concerned person.
Intern had also got the opportunity to analyze the forward rates. Inter found that the
bank doesnt calculate any rates before issuing the forward rates and there is the
difference between the book knowledge and the real world functioning in doing the
forward rates.
4.5Credit Department
Credit department is the main source of the income of any bank. The main objective of
the bank is to provide the credit facility to the people who need the money. Credit is
the amount available to a company or individual from the banking system. It is the
aggregate of the amount of funds financial institutions are willing to provide to an
individual or organization on receiving of the interest.
Credit department provides different types of products and services to the customers.
Some of the products and services are credit card, corporate loan, small and medium
enterprise (SME) loan, and retail / consumer loan. Under these headings, there are
different types of loan that are sub-classified. Credit department holds the key to
success as it is also the main reason for the organization to go out of the business. So,
the credit department should be handled very delicately.
Credit department performs various tasks and some of them are preparing the Credit
Approval Package (CAP), issuing credit to the customer, issuing credit card, site visits,
interest deduction, relationship management, etc.
quarterly basis. Intern had been provided with the responsibility of filling up the CIB
form. While filling up the form intern had to search the whole file to extract the
information. The general information that it asks is about the personal information
(like 3 generation info, citizenship number, etc.) of loan holder in case of personal loan
and in case of a firm the information like Pan Number, Registration Number,
shareholders information, etc. Intern had to search the Credit Approval Package
(CAP), the offer letter and the valuation report to know about the loan and the security
provided by the loan holder.
Preparing Advice
Advice is the bill drawn under the name of the account holder to specify them about
the charges and fees that are charged by the bank against them. Intern had to prepare
the advice under the name of different account holder according to the charge taken by
the bank. Generally, interests charged are specified in the advice. Intern had to specify
the account holder name, account number, amount charged, reason, etc.
Preparing Balance Sheet and Income Statement
Balance sheet and income statement are important in the credit department because it
shows how the firms are operating and are competent to repay the loan amount with
interest or not. Intern had to enter the data on the software according to the
information provided by the customer. Inter faces some problem due to the
terminologies used by the customer. After entering all the data, the software provides
the total of balance sheet and shows if the assets and liability and equity are equal or
not. If everything is correct then the software automatically prepares the financial
highlights that include the different ratios, Altman Z model, ROE, ROA and few
others.
Updating Insurance Data
Banks asks insurance for all those things that are security of the loan and have
possibility of risk of any damage. Insurance ensures the bank in case the security is
damaged or stolen or so on. Intern had to update the time interval of the insurance after
loan holder provides the new insurance with new maturity period. Intern had to use the
software of the bank to perform this task. Intern also had to check how much time is
remaining until the expiry of insurance of different loan holder.
Update Values of Shares
Values of shares are important for the bank when the bank provides the loan against
shares. Thats means customer deposits the share as collateral in the bank to receive
the loan. The bank only provides the 50% of the value of total stock. The duty of the
intern is to check the average stock prices of past 180 days and the closing price of last
day and then calculate the total value of the stock that are provided by the customer.
Intern had to remember that during calculation the average stock price of past 180
days or closing price whichever is lower had to be used.
Filing
Filing is the tough job to do in the credit department; not because of the volume of
work but because of the size of file of loan. Intern had to do filing job on a regular
basis as many documents are updated time and again.
Photocopying
Intern had to know the photocopy machines function very well to complete the task of
photocopy in the credit department. Many documents that have to be photocopied are
in huge size, so the functions like ratios have to be known by the intern. Intern had to
photocopy many documents on a regular basis in the credit department.
Informed about the insurance that have been expired and not updated.
analyzed that the credit department holds the high ratio of profitability of the bank and
is critical role for the success of the bank. Intern had observed that there is quite
regular and close monitoring from the branch manager in the credit dept. than other
departments.
of transferring the amount in the customer account from corresponding bank. The
cheques that are presented before 11 a.m. are cleared on the same day (except Friday);
that means the amount is credited on the same date in the customers account. The
cheques that are presented after 11 a.m. are cleared on the next day. Intern had to enter
some specific data (like corresponding bank short form, cheque number, amount, etc.)
into the system for account to account transfer i.e. to clear on the same date. Intern had
to enter some specific data (like code of the corresponding bank, cheque number,
amount, etc,) into the system for cheque booking i.e. to clear the cheque on the next
day.
Checking and Calculating the Amount
Intern had to check the document of Performa invoice and match the information with
the form for Draft or SWIFT transaction. Then intern had to calculate the amount of
the entire document including the fees and commission. Intern also had to remember
that the commission are charged according to the banks pre-defined rate.
Providing Information
Intern had to provide the information regarding the different functions done in the
remittance / bills dept. Intern had to provide information about the different rates on
the term deposits. Intern also had to tell the customer about the different vouchers
according to their need. Intern also had to inform about the change in regulation in the
process of ECC by NRB. Intern specifically had to clarify the customer about not
putting any stamp on the front side of the cheque as it would not be processed further.
Performing Moneygram Transaction
Intern had to perform the transaction of Moneygram (money transfer service). Intern
had to enter the data which are provided on the voucher. The system shows the balance
with respect to that data and if there is the positive balance then intern had to further
enter the information related to the person who provided the voucher. After that, intern
had to print the document and submitted it to the officer for further process.
Printing Document
Intern had to print the document of those cheques that are not cleared which are
processed on that day before 11 a.m. and the day before that. The document includes
the cheque information and the reason for not clearing the cheque. Then intern had do
attach those documents with the original cheque.
Filling Forms
Intern had to fill the different forms in this department. Intern had to fill the forms like
cheque deposit vouchers, term deposit form, HimalRemit voucher, Bi. Bi. Ni. form
number 4 ka and few others.
Photocopying
Intern had to photocopy the different documents on a regular basis. Intern also had to
photocopy the customer identity cards which are used in different transactions.
Helping the customer to fill out the different forms and describing the
complicated terminologies.
Informing the problem that raise during the interaction with customers to the
authorized person for the solution.
Describing different interest rates of term deposit due to the lack of broachers.
CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
Financial institution in Nepal is in emerging stage. The commercial banks are
dominating through their products and services; however, the other financial
institutions are on the verge of the huge competition. The rules and regulation are
matching the international standard while the foreign investments are in the right track
for the financial institutions.
The internship is done for the two month period in Himalayan Bank Limited. HBL is
one of the successful banks in the Nepalese banking industry for quite a long time.
HBL is known for their innovations in the financial sector. It has been quite a journey
in the field of finance for the intern. Intern had the opportunity to learn so many things
during the internship period. Internship had transformed the mindset towards the
banking industry. Intern had learnt various skills regarding the different departments
along with the knowledge of functioning of the bank.
Though the time period of the internship is short to acquire any depth knowledge,
intern had understood the mechanism of the different departments. Intern realized that
the success of the any institution lies in its customer and the loyalty from the customer
is more valuable than the number of customer. Intern had found that doing the same
thing with same person is simple, but doing the same thing with different person is
difficult. Intern had learnt how to use the theoretical knowledge in the practical field
but also found that every time the theoretical knowledge is impossible to apply. Intern
had learnt to cope with the different situation and learnt to bond with the new
surroundings.
The study has its vital significance to the intern and overall the intern found the
internship training at HBL, New Road Branch to be a very rewarding experience.
Intern learnt how to use the theoretical knowledge and about some differences
between theoretical knowledge and real world practice.
The importance of good working environment and the relation between the
employees.
Bibliography
Books
Shrestha, M.k. &. Bhandari. D.B. (2008). Financial Markets & Institutions, Asmita
Books Publishers and Distrbutors., Kathmandu.
Saunders, A & Cornett, M.M. (2010) Financial Markets And Institutions, Tata
McGraw Hill Company Ltd., India.
Gautam R., Gurung, R., Pokharel, J., Kadel,R. & Sigdel, S. (2011) Foundation of
Financial Instiutions and Markets. (2nded.) Ayam Publication Pvt. Ltd ,Kathmandu.
Brigham, E.F. & Houston, J.F. (2004). Fundamentals of Financial Management,
Thompson Asia Pvt. Ltd., Singapore.
Websites
http://www.himalayanbank.com/
http://en.wikipedia.org/wiki/Bank
http://www.duhaime.org/LegalDictionary/B/Bank.aspx
http://www.businessdictionary.com/definition/bank.html
http://www.investopedia.com/terms/c/commercialbank.asp
http://www.investopedia.com/university/banking/
http://finmanep.blogspot.com/2010/07/financial-market-general-background.html
http://nepalibankingsector.blogspot.com/2011/04/history-of-banking-in-nepal.html
http://en.wikipedia.org/wiki/History_of_banking
http://econkancha.blogspot.com/2007/07/history-of-financial-market-in-nepal.html
http://anju.page.tl/Commercial-Banking.htm
http://imnepal.com/banking-in-nepal-a-history-of-banking-system-in-nepal/
http://www.investopedia.com/articles/07/banking.asp
http://www.bfr.nrb.org.np/statistics/bank_fina_statistics/Banking_and_Financial_Statis
tics--No_58%20July%202012.pdf
http://www.businessdictionary.com/definition/bank.html
ANNEX I
List of Commercial Banks in Nepal
(Amount in Millions)
S.N.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Name of Banks
Operation
Paid up
Date (A.D.)
1937/11/15
1966/01/23
1984/07/12
1986/03/09
1987/02/28
1993/01/18
1993/07/07
1994/06/06
1994/10/18
1995/03/12
1996/10/14
1998/07/17
1998/07/21
2000/10/03
2001/04/03
2002/04/03
2002/12/24
1968/01/21
2007/01/02
2007/04/20
2007/09/24
2007/10/12
2008/05/25
2008/06/02
2009/05/07
2010/04/05
2010/07/23
2010/09/20
2010/11/26
2011/03/10
2012/02/15
Capital
1772.83
1172.30
2435.72
3012.92
1610.17
2400.00
2093.99
2009.40
1391.64
1604.19
1400.00
1430.00
1311.55
2478.79
1603.80
1694.08
1619.24
9474.30
2184.86
2101.84
2245.75
2015.00
2000.00
2000.00
2000.00
2000.00
1631.00
1400.00
1200.00
1080.00
2016.00
(Source: NRB)
ANNEX II
Organizational Structure of HBL (New Road Branch)
Branch
Manager
Deputy
Branch
Manager
Credit
Dept. Head
International
Banking
Dept. Head
SubOrdinates
SubOrdinates
Operation
Incharge
Administration
Head
Cash Dept.
Head
Customer
Service
Dept. Head
Remittance
Head
SubOrdinates
SubOrdinates
SubOrdinates
ANNEX III
List of Branches of Himalayan Bank Limited
Inside Valley Branches
1. Battisputali Branch
2. Bhaktapur Branch
2. Banepa Branch
3. Card Center
3. Barahabise Branch
4. Chabahil Branch
4. Bhairahawa Branch
5. Corporate Office
5. Bharatpur Branch
6. Biratnagar Branch
7. Kalanki Branch
7. Birgunj Branch
8. Kaushaltar Branch
8. Butwal Branch
9. Maharajgunj Branch
9. Damak Branch
ANNEX IV
Members of Boards of Directors
Name
Mr. Manoj B. Shrestha
Mr. Salim Amlani
Mr. Prem P.Khetan
Mr. Prachanda B. Shrestha
Mr. Bijay B. Shrestha
Mr. Radha Krishna Pote
Mr. Sushil Bikram Thapa
Mr. Upendra Keshari Poudyal
Mrs. Ranjana Shrestha
Mr. Surendra Silwal
Ms. Menuka Shrestha
Mr. Sunil Bahadur Thapa
Mr. Himalaya Prasad Siwakoti
Mr. Himalaya S. Rana
Designation
Chairman
First Vice Chairman
Second Vice Chairman
Director
Director
Director
Director
Professional Director
Alternate Director
Alternate Director
Alternate Director
Alternate Director
Alternate Director
Chief Advisor to the Board