CUSTOMER SERVICE OF

NEPAL BANK LIMITED

An Internship Report

Submited By:

Rasjit Ale
Nepal Commerce Campus
TU Registration Number: 7-2-25-43-2006
Exam Roll Number: 3540

Submitted To:
Office of the Dean
Faculty of Management
Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

New Baneshwor, Kathmandu

September, 2010

RECOMMENDATION
in letter pad of college

ACKNOWLEDGEMENTS
It has been a great experience working and learning as an intern in Nepal Bank Limited
(NBL), Kantipath Branch. This report is a sincere attempt of partial fulfillment of the
requirement of Bachelor of Business Administration (BBA) under Tribhuvan University
(TU). This report aims to explore the details about the Customer Service of NBL.

First and foremost, my indebtedness and sincere thanks goes to the Faculty Members and
BBA administration of Nepal Commerce Campus, especially to Program Director Mr.
Yadav Jung Karki and my Intern Supervisor Mr. Jhabindra Pokharel for their continuous
inspiration and timely guidance since the very beginning till the end of internship period.

I would like to express my sincere gratitude and deep appreciation to Mr. Dhana Ram
Shrestha, Branch Manager and Mr. Khadga Bikram Moktan, Deputy Branch Manager, for
giving me an opportunity to work as an intern in NBL, Kantipath Branch. I am also
grateful to Mrs. Mira Timilsina and Mrs. Rita Luitel (Customer Service Department), Mr.
Roshan Pokharel (Remittance Department) and Mrs. Shanta Dahal (Out Bills Collection)
for their support, constant encouragement and prompt help in the learning process during
the internship period.

I am very thankful to my family, friends and all the staffs of NBL who have helped me
directly or indirectly for preparing this project report.

..
Rasjit Ale
Nepal Commerce Campus
Exam Roll No.: 3540
September, 2010

TABLE OF CONTENTS

Content

Page no.

Approval Page
Recommendation Letter
Acknowledgements
Table of Contents
List of Tables
Abbreviations
Chapter 1: Introduction
1.1 Background of the Study
1.2 Objectives of the Study
1.3 Methodology of the Report
1.3.1 Organization Selection
1.3.2 Placement
1.3.2 Duration
1.4 Limitations of the Study

1-3
1
2
2
2
3
3
3

Chapter 2: Introduction of Banking Industry

2.1 Background
2.2 History of Bank
2.3 History of Banking in Nepal
2.4 Commercial Banking at a Glance

4-8
4
5
6
8

Chapter 3: Introduction of Nepal Bank Limited

3.1 Introduction
3.2 Vision, Mission and Values Statement
3.3 Objectives
3.4 Ownership Structure
3.5 Organization Structure of NBL
3.6 Composition of Board of Directors
3.7 Management Team
3.8 Products and Services offered by NBL

9-14
9
10
10
11
11
12
12
13

3.8.1 Deposit
3.8.2 Loans/Advances
3.8.3 Remittance
3.8.4 Other Services

13
13
14
14

Chapter 4: Analysis of Activities Done

4.1 Activities done at CSD
4.1.1 Receiving the Visitors/Clients
4.1.2 Opening of New Accounts
4.1.3 Account Closing
4.1.4 Issue of Cheque Books
4.1.5 Issue of ATM Cards
4.1.6 Furnishing Statement of Transactions
4.1.7 Furnishing Account Balances
4.1.8 Updating Records
4.2 Activities done at OBC
4.3 Activities done at RD

15-20
15
15
15
17
17
18
19
19
19
20
20

Chapter 5: Conclusion and Lesson Learnt

5.1 Conclusion
5.2 Lesson Learnt

21-22
21
22

Bibliography
Appendices

LIST OF TABLES
Tables

Page No.

Table 1.1: Placement and Duration

Table 3.1: Shareholding Composition of NBL

Table 3.2: NBL Network Overview
Table 3.3: NBLs Management Committee
Table 3.4: NBLs Management Team

10
11
11
11

ABBREVIATIONS

ABBS
A.D.
ADB
ATM
BBA
B.S.
CSD
HRD
IBC
NBL
NIDC
NRB
NRs
OBC
RD
SCT
SMS
SWIFT
TT
TU
US

Any Branch Banking Services

Anno Domini
Asian Development Bank
Automated Teller Machine
Bachelor of Business Administration
Bikram Sambat
Customer Service Department
Human Resource Department
Inward Bills Collection
Nepal Bank Limited
Nepal Industrial Development Corporation
Nepal Rastra Bank
Nepali Rupees
Outward Bills Collection
Remittance Department
Smart Choice Technologies
Short Message Service
Society for Worldwide Interbank Financial Telecommunication
Telegraphic Transfer
Tribhuvan University
United States

CHAPTER 1
INTRODUCTION

1.1 Background of the Study

As per the requirement of Bachelor of Business Administration (BBA) program to
perform as an intern for eight weeks period, the internship was performed at Nepal Bank
Limited (NBL) Kantipath Branch. During the internship period, the opportunity of
working at Customer Service Department (CSD), Outward Bills Collection (OBC) and
Remittance Department (RD) were received. This report includes the study based on the
knowledge and experience acquired at NBL and basically focuses on the procedures of
activities performed at CSD.

Customer service also known as client service is the provision of service to customer
before, during and after a purchase. It is a series of activities designed to enhance the
level of customer satisfaction, i.e., the feeling that a product or service has met the
customer expectation. CSD acts as a liaison between a bank and its customers. It is the
first venue that the customers generally approach to. CSD is essentially a negotiator that
helps in keeping the balance and excellent relation between the bank and the customers.
In the service field like banking, customers need to be treated with utmost respect and
dedication.

CSD is the most appropriate department for an intern because all the customers at first
come to this department to get the information of anything they need to do with the bank.
Staffs performing job in CSD need to have the general information about all the
departments and their procedures. The major and interesting task in CSD is dealing with
the customers. This is also challenging because different faces arrive with different
problems, queries, interests and perception.

1.2 Objectives of the Study

The primary objective of the internship program is to transform the academic bookish
knowledge into practical knowledge and to understand how the concepts and theories are
applied in the real working environment. This report has been prepared with the objective
of analyzing the activities carried out as an intern at NBL which encompasses the
personal experience, overall tasks assigned and done, and lesson learnt.
The specific objectives of the study were:

To learn the process of opening and closing accounts.

To get acquainted with the customer services provided by NBL.

To know about the process of issuing checks, cards and statements.

1.3 Methodology of the Report

This report is prepared from the data collected during the internship period and also after
its completion. The data collected and presented in this report consists from both primary
and secondary sources. Primary sources of data are the formal and informal interactions
with authorized persons in the bank, as well as careful observation of different activities
and documents during the internship period. Secondary sources of data that have been
used in this report are the past issues of annual reports of NBL and brochures of various
financial products of the bank. Similarly, the official website of the bank and Nepal
Rastra Bank (NRB) are concerned for the secondary data.

1.3.1 Organization Selection

The area of specialization was on Banking and Finance course. Therefore, there was a
need to select an appropriate financial organization to complete the internship. Thus,
NBL was selected for the fulfillment of the need. Long experience of banking business,
huge market share, quality of banking services, huge assets, higher profitability, one of
the leading banks of Nepal in terms of its deposits, lending and customers service were
the drivers that motivated to select NBL for the internship.

1.3.2 Placement
The Human Resource Department (HRD) of NBL at Head Office accepted the internship
application and selected the Kantipath Branch for internship. During the internship
period, placements were made in various departments of the bank with the likes of CSD,
OBC and RD. Each department had different tasks and variety of jobs to perform and
reasonable guidance, full support and cooperation were received from the staff members
of the bank to work with ease environment.

1.3.3 Duration
The HRD of NBL Head Office granted an internship period of eight weeks at Kantipath
Branch, starting from Asadh 8, 2067 B.S. (June 22, 2010 A.D.) and it ended on Shrawan
31, 2067 B.S. (August 16, 2010 A.D.). Most of the duration of internship was spent on
CSD. The duration spent in each department is presented in the following table:

Table 1.1: Placement and Duration

S. No.
1.
2.
3.

Departments
Customer Service
Outward Bills Collection
Remittance

Duration (in weeks)

5
2
1

1.4 Limitations of the Study

Although internship program imparted valuable real life knowledge, it also has several
drawbacks. Some of such limitations are enumerated below:

The internship period of eight weeks was insufficient to understand the broader
picture of the organization as well as the industry in which it operates.

Only surface study of the task and procedures in the department has been done.
Due to time constraints, in-depth study of activities could not be carried out.

The authenticity of the report depends on the authenticity of the data provided by
the bank, which are secondary data.

CHAPTER 2

INTRODUCTION OF BANKING INDUSTRY

2.1 Background
A bank is a financial institution dealing with money and its substitutes, while providing
various financial services. It collects deposits from surplus economic units (whose current
incomes exceed their expenses) and lend the money to deficit economic units (whose
expenditures exceed their incomes).
G. Crowther says "A bank is an institution which collects money from those who have it
to spare or who are saving it out of their income and lends this out to those who require
it".
According to US Law, Any institution offering deposits to withdrawal on demands and
making loans of a commercial or business nature is bank.
Commercial banks are the largest type of banks, in terms of size, who raise funds
primarily by accepting various types of deposits from general public. They then use these
funds to make commercial and consumer loan, and to buy government and municipal
securities. These days commercial banks are moving towards micro financing sectors
like: Auto loan, Education loan, Professional loan, and Housing loan because of low risk
and lack of proper and secured investing sectors. They are also actively involved in
remittance sector.

Bank is a financial service institution especially concentrating on credit, savings and

payment services and performing the widest range of financial functions of any business
firm in the economy. Its major function is to formulate the capital by collecting the small
diversified savings scattered all over the nation. The major activities performed by a
typical modern bank are accepting deposits, granting loans, exchange of foreign currency,
transfer of funds, credit creation, and functioning as an agent of customer. So, the bank

has become essential part of modern society, which helps in the development of overall
condition of a country.

2.2 History of Bank

The word Bank has been derived from the Latin word bancus, Italian word banca
or French word banque. All these words give the same meaning that is desk/bench.
Since people used to perform the monetary transaction by sitting on the bench at earlier
times, the word Bank was derived from the word Bench. The history of banking is
nearly as old as civilization. In ancient Rome and Greece, the practice of storing precious
metals and coins at safe places and lending out money for public and private purposes on
interest was prevalent. In England, banking has its origin with the London goldsmiths
who in the 17th century adept the valuable thing of the public for the safe keeping at
certain commission (interest) and to be returned to those, the depositor wished. According
to Crowther, modern Banking has three ancestors- The Merchant, The Goldsmith and The
Money Lender.

As a public enterprise, banking made its first beginning around the twelfth century in
Italy and the Bank of Venice, founded in 1175 A.D. was the first the public banking
institution. Subsequently Bank of Barcelona and the Bank of Genoa were established
in 1401 A.D. and 1407 A.D. respectively. The Bank of Venice and the Bank of Genoa
continued to operate until the eighteenth century. These modern bank gradually replaced
goldsmith, merchant and money lender. Bank of England in 1694 A.D and Bank of
Hindustan in 1770 A.D. were established in England and India respectively as the first
bank of it. But these banks were not established according to the law. In 1833 A.D.,
Banking Act-1833 was introduced in United Kingdom which allowed opening joint stock
company banks. With the expansion of commercial activities in Northern Europe there
sprang up a number of private banking houses in Europe and slowly it spread throughout
the world.

For more than 300 years, banking on the European continent was in the hands of
powerful statesman and wealthy private banker, such as the Medici family in Florence
and the Fuggers in Germany. During the 19th century, members of the Rothschild family
became the most influential bankers in all Europe and probably in the world. This
international banking family was founded by German financier Mayer Amschel
Rothschild [1743-82], but soon spread to all the major European financial capitals.

2.3 History of Banking in Nepal

The history of banking system in Nepal is very new compared to the history of the
modern banking system of the world. Though establishment of banking industry was very
recent, some crude bank operations were in practice even in the ancient times. In
Nepalese Chronicle, it was recorded that the new era known as Nepal Sambat was
introduced by Shankhadhar, a Sudra merchant of Kantipur in 879 or 880 A.D., after
having paid all the outstanding debts in the country. This shows the basic of money
lending practice in ancient Nepal. Towards the end of Eighth century, Gunakam Dev had
borrowed money to built Kathmandu valley. In Eleventh century during Malla regime,
there was an evidence of professional moneylenders and bankers. It is further believed
that money-lending business, particularly for financing the foreign trade with Tibet,
became quiet popular during regime of Mallas. However in the absence of any regulatory
measures, the unscrupulous moneylenders were known to have changed exorbitant rates
of interest and other extra dues on loans advanced.

The history of modern banking can be linked to establishment of "Tejarath Adda" in 1877
A.D. It was established by the then government of Nepal to provide credit facilities to
general public at a low rate of 5 percent against securities like gold and silver. The need
for a real banking institution became evident after the great earthquake of 1934 AD
because there was a need for proper financing of reconstruction of the country. Under
such circumstances, Udhyog Parishad was established in 1936 to promote and protect the
trade, commerce, industries and manufacturers of Nepal. A year after its formation,
Udhyog Parishad formulated the Company Act and Nepal Bank Act in 1937. Under this
act, Nepal Bank Limited was established in 1937 with the cooperation of Imperial Bank

of India, as the first commercial bank of Nepal. It played the dual role of commercial and
central bank until 26th April, 1956, on which date Nepal Rastra Bank (NRB) was
established as the central bank of Nepal. Rastriya Banijya Bank was established in 23 rd
January, 1966. Nepal Industrial Development Corporation (NIDC) was established as a
development bank in 1959 and Agricultural Development Bank (ADB) was established in
1968.

Commercial Bank Act was formulated in 1974 A.D. and government adopted the
liberalization policy to welcome private sector in banking industry and to increase
competition among them. Nepal Arab Bank Limited (currently known as Nabil Bank
Limited) was the first joint venture bank established in 1984, joint ventured with then
Dubai Bank Limited (Dubai). Two other banks, Nepal Indosuez Bank Limited (currently:
Nepal Investment Bank) joint ventured with Indosuez Bank, France and Nepal Grindlays
Bank Limited (currently: Standard Chartered Bank Nepal Limited) joint ventured with
Grindlays Bank, London were established in 1986 and 1987 respectively.

With the establishment of joint venture banks, Nepalese banking industry has undergone
tremendous changes in the last two decades. At present there are 27 commercial banks
established in Nepal that are providing various financial services to Nepalese people
utilizing new and innovative technologies. Besides commercial banks, there are several
development banks, finance companies, and cooperatives that are providing financial
services to Nepalese people. Recently NRB issued a directive, where by it stopped giving
permissions to establish new financial institutions in Nepal, citing the size of market and
number of financial institutions already up and running.
The list of 27 commercial banks established in Nepal till date are enumerated in
Appendix 1.

2.4 Commercial Banking at a Glance

The number of commercial bank branches operating in the country increased to

752 in mid July 2009 from 555 in mid July 2008. Among the total bank branches,
50.39 percent bank branches are concentrated in the central region alone.
However, in the western, eastern, mid-western and far- western region are 19.54
percent (147), 17.95 percent (135), 7.57 percent (57) and 4.52 percent (34)
respectively.

In the Mid - July 2009, the loans and advances increased marginally at lower rate
of 31.44 percent compare to 32.30 percent in mid - July 2008. By the end of Mid July 2009, the total outstanding amount of loans and advances of commercial
banks reached to Rs. 398143.0 million. It was Rs. 302913.4 million in mid - July
2008.

In the Mid - July 2009, total deposit of commercial bank increased by 32.28
percent compare to 26.25 percent growth in the Mid - July 2008. As of Mid - July
2009, it reached to Rs. 563604.5 million from Rs 426080.3 in the Mid - July
2008. Among the component of deposit, current deposit increased with rate of
27.74 percent compare to 24.56 percent in last year. Similarly, saving deposit and
fixed deposit increased by 22.92 percent and 34.82 percent respectively.

The entry of new banks as well as rise in the capital base by some of old banks
attributed to change its capital fund. It is increased remarkably by 205.19 percent
compared to previous year and reached to Rs. 30399.5 million in mid - July 2009.
It was Rs. 9960.7 million in mid - July 2008.

The non-performing loan of commercial banks declined significantly to 3.53

percent in Mid - July 2009 from 6.08 percent in the Mid - July 2008. The total
amount of NPA remained to Rs. 13574.6 million from Rs. 18648.5 million in the
Mid - July 2008.

CHAPTER 3
INTRODUCTION OF NEPAL BANK LIMITED
3.1 Introduction
Nepal Bank Limited, the first bank of Nepal was established in November 15, 1937 A.D.
(Kartik 30, 1994 B.S.). It was formed under the principle of joint venture (joint venture
between government and general public). NBLs authorized capital was Rs. 10 million
and issued capital Rs. 2.5 million of which paid-up capital was Rs. 842 thousand.
Currently, the bank has been providing banking services through its 109 branch offices in
the different geographical locations of the country with the slogan We started banking in
Nepal, still we are leading way.

From the very conception and its creation, NBL was a joint venture between the
government and the private sector. Out of 2500 equity shares of NRs. 100 face value,
40% was subscribed by the government and the balanced, i.e., 60% was offered for the
sale to private sector. There were only 10 shareholders when the bank first started.

It can be said that NBL has a history that is unequal to any in Nepal. It was the first one
of its kind. It also served as the central bank of Nepal. It is, thus, safe to say that the
history of banking sector would be incomplete without mentioning Nepal Bank Limited.
The service rendered by NBL to the country and its people is a great one-one that has no
parallel.

3.2 Vision, Mission and Values Statement

Vision Statement
To remain the leading financial institution of the country

Mission Statement
Nepal Bank Limited seeks to provide an environment within which the bank can bring
unique financial value and services to all customers. It will be a sound institution where
depositors continue to have faith in the security of their funds and receive reasonable
returns; borrowers are assured of appropriate credit facilities at reasonable prices; other
service- seekers receive prompt and attentive service at reasonable cost; employees are
paid adequate compensation with professional career growth opportunities and
stockholders receive satisfactory return for their investment.

Values Statement
At Nepal Bank Limited, we believe that our banking should be based on:

Respect, service and safety for the customers we serve.

Respect, reward and opportunity for the people with whom we work.

Respect, cooperation and support for the economic community of Nepal.

3.3 Objectives
Nepal Bank Limited has the following objectives:

Continue to maintain leading share of banking sector with a significant presence

in all major geographical areas in the country.

Provide competitive and customer oriented banking services to all customers

through competent and professional staff.

Reclaim leadership within the national financial community.

3.4 Ownership Structure

Nepal Bank Limited is a public owned bank with majority of shares held by the public.
Other major stakeholder is the government of Nepal. Less than 10% of the bank is owned
by the A class Financial institutions or other banks.

Table 3.1: Shareholding Composition of NBL

S. No.
1.
2.
3.
4.
5.
6.

Ownership
Government of Nepal
'A' Class Financial Institutions
NRB Licensed Financial Institutions
Other Institutions
General Public
Others
Total

Percent
40.49
4.92
3.42
0.52
49.94
0.71
100
Source: http://www.nepalbank.com.np

Table 3.2: NBL Network Overview

Region-wise Branches
Kathmandu Region
Biratnagar Region
Birgunj Region
Pokhara Region
Nepalgunj Region
Total Number of Branches

Number of Branches
27
28
18
20
16
109
Source: http://www.nepalbank.com.np

3.5 Organization Structure of NBL

The organization structure of NBL is shown in Appendix 2.

3.6 Composition of Board of Directors

NRB has appointed a five members management committee. This management
committee performs as the Board of Directors of the bank.

Table 3.3: NBLs Management Committee

Dr. Pusparaj Rajkarnikar
Prof. Dr. Keshav Khadka
Mr. Ramesh Prasad Sharma
Mr. Surendra Mani Tripathi
Mr. Pramod Raj Sharma

Co-coordinator
Member
Member
Member
Member
(Source: http://www.nepalbank.com.np)

3.7 Management Team

NRB has appointed three members management team under the leadership of NRB
Director, Mr. Maheshwor Lal Shrestha.

Table 3.4: NBLs Management Team

Mr. Maheswor Lal Shrestha

Coordinator

Mr. Bimal Khanal

Mr. Krishna Raj Silwal

Member
Member
Source: http://www.nepalbank.com.np

3.8 Products and Services offered by NBL

3.8.1 Deposit

Current Account

Savings Account
Normal Saving Account
Mahila Nikshep Bachat Khata
Sammanit Jyastha Nagarik Bachat Khata
Karmachari Sahuliyat Bachat Khata
NBL Bishes Bachat Khata
Call Deposit

Fixed Deposit

Prime Bulk Deposit

3.8.2 Loans/Advances

Corporate Loan
Consortium/Term Loan
Working Capital Loan

Hypothecation Loan

Overdraft Loan

Structure Demand Loan

Consumer Loans
Personal Loans

Personal Term Loan

Personal Overdraft Loan

Auto Loans
Margin Lending
Home Loans
Education Loans
3.8.3 Remittance

NBL Web Remit

NBL Remittance Products

Inward Remittance

SWIFT

TT and Mail Transfer

Drafts

Remittance from Gulf Countries

Western Union Money Transfer Service

Remittance from India

 Outward Remittance

SWIFT

Draft

TT and Mail Transfer

Remittance to India

3.8.4 Other Services

Safe Deposit Vaults

Trade Finance
Letter of Credit
Bank Guarantee

SMS Banking

Any Branch Banking Services (ABBS)

Internet Banking

Automated Teller Machine (ATM)/Debit Card

CHAPTER 4
ANALYSIS OF ACTIVITIES DONE
4.1 Activities Done at Customer Service Department (CSD)
4.1.1 Receiving the Visitors/Clients
The primary role of the staffs at the CSD is receiving the clients who visit the bank for
different purposes such as making inquiry about the types of services offered by the bank,
opening new account, closing the existing account, getting account statements and
balances, applying for bank loan, withdrawing cash etc. CSD personnel need to be calm
and should possess good communication skill to motivate the customer to use the
services provided by the bank. So, the opportunity to receive and deal with the different
nature of customers and eventually answer their queries was achieved at CSD.

4.1.2 Opening of New Accounts

One of the major task in which the CSD is most busy in is opening different types of new
accounts. The CSD personnel are always inspiring and inducing the customers to open
new account in the bank and deposit more amounts into their accounts. There are various
schemes for different accounts offered by NBL.

While opening a savings/current account, an account opening form, signature specimen

card and savings or current voucher should be filled by the customers. The signature
specimen card consists of the signature/s of account holder/s which will be used to
operate the account in the future. The signature provided in the card is considered
authentic and must match while withdrawing funds in the future.

Requirements for opening current or savings account

Personal Account
Personal Identification (Photocopy of Citizenship Certificate and 2
photographs)

 Nominee Declaration

Proprietorship Account
Declaration of Sole proprietorship
Copy of Registration Certificate

Partnership Account
Letter of Partnership duly signed by all partners
Copy of the Partnership Agreement
Certified copy of Partnership Registration

Account of Corporate Bodies

Copy of Memorandum and Article of Association of the Company
Copy of Resolution of Board of Directors to open and operate an account
Copy of list of directors duly signed by respective directors

Accounts of Clubs, Societies and Associates (All documents to be duly certified

by the charity)
List of Office Bearers
Copy of by-laws
Copy of Resolution to pen and operate the account
Name and signature of persons authorized to operate the account
Copy of the Registration Certificat

For fixed deposit account, a separate form should be filled which consists of the
following information:

Name of the account holder

Duration of the deposit

Interest rate

Nominee's details

Savings account to which the interest will be credited

Account Opening Procedure

After the requirements in account opening form, signature specimen card and savings or
current voucher is filled by the customer, it is received by CSD. Thorough checking and
verification of identity of the customer is done. The documents are checked again to
ensure all supporting documents are present. Personal information of the customer is
entered into the NEWTON software and the computer system generates the random
number for account number, and hence the new account is created. Then, the customer
should make the payment of amount as mentioned in the voucher at Cash Department.

4.1.3 Account Closing

In relation to NBL, the account holder must be physically present to close the existing
account along with the cheque book or pass book issued by the bank. Name, account
number, and the reason behind closing the existing account should be mentioned in the
account closing form. Then the account closing form is taken to branch manager for
approval.

Account Closing Procedure

After the account closing form is received from the customer, the signature in the account
closing form is tallied with the signature of the customer in the signature specimen card
of the account in the bank. The bank charges certain amount for closing the existing
account depending upon the type of account. The standard charge for closing an account
is NRs. 200 for savings account and NRs. 500 for current account. After deducting
account closing charge, the customer receives the remaining balance from the cash
department. The remaining cheques or pass book and ATM card received from the
account holder are cancelled and later destroyed.

4.1.4 Issue of Cheque Books

At NBL, a cheque book is issued to savings, call or current account holders. A cheque
book is issued to new account holders at the time of opening of account. In case of
existing account holders, a cheque book is issued after previous cheque book is finished.

For the issuance of new cheque book, the cheque requisition slip from the previous
cheque book should fill up by the account holder. The account holder should properly
mention his/her name, authentic signature and number of cheques required in the cheque
requisition form. The signature of account holder's agent is required in the requisition slip
if the account holder cannot come to receive the cheque book himself/herself. When the
account holder cannot provide the requisition slip because of loss/stolen for the issuance
of new cheque book, then one application for the request to block the remaining cheques
and issuance of new cheque book is required. The bank charges NRs. 100 in case of loss
of requisition slip and NRs. 300 to block the lost cheques. However, the account holder
has option whether to block the lost cheques or not. The requisition slips received from
the customers are filed for the record, and issue of cheque books is maintained in a
register at the CSD.

4.1.5 Issue of ATM Cards

Nepal Bank has introduced its NBL Debit Card by joining the hands with Smart Choice
Technologies (SCT), the first company in Nepal to provide networked ATMs. The
account holders seeking for NBL Debit Card should fill up a separate ATM card request
form. It can be done at the time of opening the account or any time later. After the
reception of debit card issuance request from customers, the signature is verified. The
request form is taken to branch manager for approval. A list is made of the entire requests
and is sent to the Card Division of Head Office in Dharmapath for furthur processing.

ATM card is only provided to the account holder because it includes the pin code, which
is used to access the account from ATM machines to withdraw money. So it is highly
risky to give to others. It is given to the account holder only after signature verification is
entered in the register maintained at CSD. The bank has given the facility of ATM Card at
free of cost for one year and later it charges NRs. 150 per year. Currently, NBL has 18
ATM outlets throughout the country and is planning to increase its numbers in future.
NBL Debit Card is also accepted in India via ATMs of Punjab National Bank.

4.1.6 Furnishing Statement of Transactions

NBL provides statement of transactions to the customers at their request for free of cost.
It shows the general transactions of an account. It shows all the transactions both debit
and credit that took place within a specified period of time. The customer should be
physically present to request for the statement of transactions. If that is not possible, he
can write an application to provide the statement of transaction to the agent with the
application. Statement of transactions for corporate accounts is issued only after request
is received in the official letterhead of the firm. NBL provides statement of transactions
everyday, every week, every 15 days or every month on the request of account holders.

4.1.7 Furnishing Account Balances

CSD also provides the account balances information in the customers account on their
request but such account balance information is provided only to the account holders.
Inquiries about account balances through phones are not entertained.

4.1.8 Updating Records

The CSD personnel needs to update the records if any change has occurred to the
customers previously submitted information as soon as new information is provided to
the CSD.

Change in Address
If the change in clients address takes place and such changes are notified to the
bank for the necessary updates for bank records, the staffs at CSD are responsible
for making the information of the customers up to date.

Change in Signature
In the following circumstances, change in signature is asked by the client.
Change in writing habit
Change in ownership
Change in authorized person/office bearer etc.
For uninterrupted operation of accounts such changes are notified to the bank in
writing for necessary updating of banks record and change of specimen signature
cards.

4.2 Activities Done at Outward Bills Collection (OBC)

In this department, the cheques from banks other than NBL are received from the
customers, which have to be deposited in their respective accounts at NBL. There are
some cheques that are drawn by a non-NBL account in favor of NBL account holders and
thus are treated as outward bills for collection.
The major activities performed in this department were:

Receiving cheques from the customers for outward clearing.

Making the entry of outward clearing in the clearing register on daily basis.

Preparing and printing out the clearing sheet for outward clearing.

Assisting in preparing IC draft.

4.3 Activities Done at Remittance Department (RD)

Remittance refers to the transfer of money from an individual to another individual from
one location to another location within the same country or different countries.
Remittance transfer help customers to remit money from one place to another through
agents appointed by the bank. The business of remittance fund transfer into Nepal, from
Nepal and within Nepal through NBL is most reliable, timely at the minimum of charges.
The major activities performed at remittance department were:

Dealing with customers to provide information regarding remittance services

provided by the bank.

Making necessary entry for inward and outward remittance.

Assisting in proper filing of all the documents and letters and maintaining register.

Observing and learning the remittance procedures.

CHAPTER 5
CONCLUSION AND LESSON LEARNT

5.1 Conclusion
The eight weeks period of internship was very fruitful to understand and experience the
real working environment of the commercial bank. This report is based on personal
experiences during those internship period worked as an intern at NBL, Kantipath
Branch. This report in particular has provided the knowledge about the customer services
that NBL has been offering. NBL provides various services to its valued customers. CSD
is the main frontier in providing quality services to the customers of NBL. CSD is an
integral part of the bank because CSD is the department in which customers first get
aware with.
An institution such as a commercial bank plays a significant role in the development of
economy as it facilitates the growth of trade and industry of the national economy. It is
even more evident in NBLs case as it is the pioneer in the banking sector of Nepal. As
the first ever commercial bank its role and contribution to the development of the
countrys economy is unparallel to any. However, it fell behind the joint venture banks
and its market position was shattered by losses incurred chiefly due to nonperforming
assets. Now, it is resurging under the leadership of a new management brought by the
central bank and has started making profits too.

NBL is playing a pivotal role in facilitating remittance to and from across the globe. It
has done strategic partnerships with several remittance providers around the globe to
provide remittance service to Nepalese customers. People from anywhere in the world
can send money to their dear ones in Nepal and from Nepal through the bank's own web
based NBL Web Remit. NBL has introduced ABBS system in its 38 branches all over the
country making the customers much easier to deposit money into their accounts.

NBL is committed to meet the financial needs of customers and exceed their expectations
through innovative solutions. It promises to deliver customer centered products and
services par excellence with the customer care and full satisfaction. To become the
leading bank of Nepal, NBL 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.

5.2 Lesson Learnt

Before internship, the knowledge was only based on books and their theories. Now the
level of understanding in real work settings and nature of organization's problems has
definitely increased. Being a student specializing in Banking and Finance, internship at
NBL helped to gain valuable insight into the functional and operational aspects of a
branch of a bank, and overall banking industry.

The most beneficial, and interesting, part of internship is the experience gained from
customer dealing. Dealing with variety of customers, handling them, solving their
queries, and providing them satisfaction from service supported to develop
communication and interpersonal skills. It was also enhanced by the regular formal and
informal talks with the professional staffs of the bank. It helped to learn a proper way of
communication with customers, colleagues and superiors.

Through internship at NBL, the different kinds of personal and non-personal skills were
learnt. Similarly, an opportunity was received to get familiar with the banking software
i.e. NEWTON. Overall, the internship program helped to develop the interpersonal,
managerial and entrepreneurial skills that are crucial in every professionals and
employees career development. Working at NBL as an intern was a wonderful
experience. The bank was very concerned with the professional development of all of
their staffs, including interns.

BIBLIOGRAPHY
Books
Ross, S.A., R.W. Westerfield & B.D. Jordan. (2009). Fundamentals of Corporate
Finance. New Delhi: Tata McGraw-Hill Publishing Company Limited.
Kolb, Robert. W & Riccardo J. Rodriguez. (1966). Financial Institutions and Markets.
Massachusetts, USA: Blackwell Publishers.
Gautam, R.R., Gurung, R., Pokharel, J., Kandel, R. P. & Sigdel, S. (2008). Foundation
of Financial Institutions & Markets. Kathmandu: Ayam Publication.
Shrestha, M.K. & Bhandari D. B. (2007). Financial Markets and Institutions.
Kathmandu: Asmita Publication.
Manandhar, K.D. & Pokhrel, S. B. (2009). Marketing Financial Services. Kathmandu:
Asmita Books Publishers & Distrubutors (P) Ltd.

Websites
http://www.nepalbank.com.np
http://www.nrb.org.np
http://www.sebonp.com

Others
Nepal Bank Limited: (2010). Brochures. Kathmandu.
NRB (2009). Banking and Financial Statistics. Katmandu: Issue No. 53

Appendix 1: List of Licensed Commercial Banks in Nepal

S.N. Names of Commercial Banks

Operation
Date (A.D.)

Head Office

1.

Nepal Bank Ltd.

1937/11/15

Kathmandu

2.

Rastriya Banijya Bank

1966/01/23

Kathmandu

3.

Agriculture Development Bank Ltd.

1968/01/02

Kathmandu

4.

NABIL Bank Ltd.

1984/07/16

Kathmandu

5.

Nepal Investment Bank Ltd.

1986/02/27

Kathmandu

6.

Standard Chartered Bank Nepal Ltd.

1987/01/30

Kathmandu

7.

Himalayan Bank Ltd.

1993/01/18

Kathmandu

8.

Nepal SBI Bank Ltd.

1993/07/07

Kathmandu

9.

Nepal Bangladesh Bank Ltd.

1993/06/05

Kathmandu

10.

Everest Bank Ltd.

1994/10/18

Kathmandu

11.

Bank of Kathmandu Ltd.

1995/03/12

Kathmandu

12.

Nepal Credit and Commerce Bank Ltd.

1996/10/14

Siddharthanagar, Rupendehi

13.

Lumbini Bank Ltd.

1998/07/17

Narayangadh, Chitawan

14.

Nepal Industrial & Commercial Bank Ltd.

1998/07/21

Biaratnagar, Morang

15.

Machhapuchhre Bank Ltd.

2000/10/03

Pokhara, Kaski

16.

Kumari Bank Ltd.

2001/04/03

Kathmandu

17.

Laxmi Bank Ltd.

2002/04/03

Birgunj, Parsa

18.

Siddhartha Bank Ltd.

2002/12/24

Kathmandu

19.

Global Bank Ltd.

2007/01/02

Birgunj, Parsa

20.

Citizens Bank International Ltd.

2007/6/21

Kathmandu

21.

Prime Bank Ltd

2007/9/24

Kathmandu

22.

Sunrise Bank Ltd.

2007/10/12

Kathmandu

23.

Bank of Asia Nepal Ltd.

2007/10/12

Kathmandu

24.

Development Credit Bank Ltd.

2001/01/23

Kathmandu

25.

NMB Bank Ltd.

1996/11/26

Kathmandu

26.

KIST Bank Ltd.

2009/05/07

Kathmandu

27.

Janata Bank Nepal Ltd.

2010/04/28 Kathmandu
(Source: http://www.nrb.org.np)

Appendix 2: Organization Structure of NBL

(Source: http://www.nepal.com.np)

Appendix 3:

Nepal Bank Limited

Balance Sheet

S.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.

Capital and Liabilities

Current Year
(NRs.)
Share Capital
380,382,600
Reserve and Fund
(5,234,694,507)
Debentures and Bonds
Borrowings
1,970,675,296
Deposits
45,194,232,465
Bills Payables
12,016,207
Proposed and Dividend Payable
2,065,342
Income Tax Liabilities
Other Liabilities
5,234,433,202
Total Liabilities 47,559,110,605
As on July 15, 2009 (31st Ashad, 2066)

Previous Year
(NRs.)
380,382,600
(6,388,684,333)
1,820,088,867
41,829,391,063
52,342,562
2,067,637
4,357,855,914
42,053,444,310

S.
No.
1.
2.
3.

Assets

Current Year NRs.

Previous Year NRs.

Cash Balance
Balance with NRB
Balance with Banks/Financial
Institution
Money at Call and Short Notice
Investment
Loan Advances and Bills
Purchase
Fixed Assets

1,515,654,833
6,619,700,019
1,036,435,088

1,181,792,413
4,430,641,018
1,004,559,156

400,000,000
13,397,559,686
17,614,898,825

16,570,755,516
13,251,962,768

249,393,295

207,527,502

4.
5.
6.
7.

8.
9.

Non-Banking Assets
Other Assets

6,725,468,859
5,406,205,937
Total Assets 47,559,110,605
42,053,444,310
(Source: http://www.nepal.com.np)

Appendix 4:
Nepal Bank Limited
Profit and Loss Account
As on 15th July, 2009 (31st Ashad 2066)
S.
No.
1.
2.

Particulars
Interest Income
Interest Expenses
Net Interest Income

Current Year
(NRs.)
2,690,058,308
791,710,648
1,898,347,660

Previous
Year (NRs.)
2,094,905,989
772,657,472
1,322,248,517

3.

Commission and Discount

273,106,394

229,723,643

4.

Other Operating Income

156,757,711

157,431,924

5.

Exchange Fluctuation Income

89,209,047

119,407,417

Total Operating Income 2,417,420,812

1,828,811,501

6.

Staff Expenses

1,640,565,751

1,346,823,561

7.
8.

Other Overhead Expenses

Exchange Fluctuation Income

297,015,369
-

259,785,526
-

479,839,692
334,315,061
145,524,631
57,526,715
676,372,384
879,423,730
165,144,642
1,044,568,372
94,960,761

222,202,414
258,572,259
(36,369,845)
67,941,907
134,361,753
165,933,815
179,996,994
345,930,809
31,448,255

85,801,936
1,744,239

75,268,544
-

Operating Profit Before Provision For Possible Loss

9.
Provision For Possible Losses
Operating Profit
10. Non-Operating Income / Loss
11. Loan Loss Provision Written Back
Profit from Regular Operations
12. Profit / Loss from Extra-Ordinary Activities
Net Profit after considering all activities
13. Staff Bonus Provision
14. Tax Provision
a. Current Year
b. Up to Last Year

c. Current Year withheld Tax Income/Loss

(32,192,746)
Net Profit / Loss 894,254,182
239,214,010
(Source: http://www.nepal.com.np)