GENERAL BANKING ACTIVITIES OF RASTRIYA

BANIJYA BANK LIMITED, DHULIKHEL

An Internship Report

Submitted by
SAGUN KARKI
Bhaktapur Multiple Campus
Symbol Number: 16121/15
T.U. Regd. No.:7-2-20-608-2015

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 (B.B.A.)

Dudhpati, Bhaktapur
September, 2019
INTERNSHIP COMPLETION LETTER

ii
 DECLARATION

This Internship Report entitled “ General Banking Activities of Rastriya Banijya Bank
Limited, Dhulikhel” which is submitted by me in partial fulfillment of the
requirement for the award of BBA degree of Tribhuvan University comprises only my
original work and due acknowledgements have been made to materials used in the
report.

............................

Sagun Karki

September, 2019

iii
 BONAFIDE CERTIFICATE

Certified that this Internship report

General Banking Activities of Rastriya Banijya Bank Limited, Dhulikhel

is the bonafide work of

Sagun Karki

who carried out the Internship Report under my supervision. This report is forwarded
for examination.

–––––––––––––––––– ––––––––––––––––––

Sanu Babu Bhujhel Gyani Shah Malla

(Lecturer) (Program Director)

–––––––––––––––––––
Name of the External Examiner:
Date:

iv
 ACKNOWLEDGEMENTS

This report is an outcome of hard work, which is designed to help the readers who
have the better understanding of the banking scenario of Nepal with reference to
Rastriya Banijya Bank Limited. Many people have devoted their precious time and
effort in the course of preparing this report. I would like to take this opportunity to
acknowledge all of them who helped me directly or indirectly.

First and foremost, my sincere gratitude goes to Tribhuvan University for this
opportunity to do an intern as a part of BBA course requirement. Further I would like
to express my appreciation towards the BBA Administration of Bhaktapur Multiple
Campus for guiding me and cooperating greatly to complete the internship program
successfully.

I am thankful to Mr. Binod Parsad Sapkota, Branch Manager of Rastriya Banijya

Bank Limited, Dhulikhel branch for letting me do my internship. I would like to thank
him for welcoming me to the bank and introducing me with the other employees. I
would like to extend my heartful appreciation to Mrs. Eliza Kayastha, Mr. Chandra
Bahadur Dahal, Mrs. Sushma Sapkota, Mrs Alina Ghimire, Mr. Door Tamang, for
their constant support in teaching me all the necessary things related to the relative
department. I am also thankful to my friends for supporting me in different activities.

I take this opportunity to express gratitude and deep regards to my report supervisor,
Mr. Sanu Babu Bhujhel for his exemplary guidance, monitoring and constant
encouragement.

Finally, I would like to thank my parents for their never ending support. I am very
much grateful to them for always being there by my side. I offer my regards to all of
those who supported me in any respect during the completion of the report.

Thanking you,

Sagun Karki

v
 TABLE OF CONTENTS

Page no.

INTERNSHIP COMPLETION LETTER ........................................................................ii

DECLARATION ............................................................................................................iii

BONAFIDE CERTIFICATE ......................................................................................... iv

ACKNOWLEDGEMENTS ............................................................................................. v

TABLE OF CONTENTS................................................................................................ vi

LIST OF TABLES.......................................................................................................... ix

LIST OF FIGURE .......................................................................................................... x

LIST OF ABBREVIATIONS .......................................................................................... xi

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

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

1.1 Background .......................................................................................................... 1

1.2 Objectives of the study......................................................................................... 2

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

1.3.1 Organization selection .................................................................................. 3

1.3.2 Placement ...................................................................................................... 3

1.3.3 Duration of internship ................................................................................... 3

1.3.4 Activities performed in the organization ...................................................... 4

1.4 Limitations ........................................................................................................... 6

1.5 Sources of data ..................................................................................................... 6

CHAPTER TWO ......................................................................................................... 8

INTRODUCTION TO THE BANKING INDUSTRY ............................................. 8

2.1 Introduction of bank ............................................................................................. 8

2.2 Origin of the word “Bank" ................................................................................... 9

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 2.3 History of banking in Nepal ............................................................................... 10

2.4 Present situation of banking industry in Nepal .................................................. 11

2.5 Types of bank in Nepal ...................................................................................... 12

CHAPTER-THREE ................................................................................................... 16

INTRODUCTION TO THE ORGANIZATION .................................................... 16

3.1 Introduction of Rastriya Banijya Bank Limited................................................. 16

3.2 Objective ............................................................................................................ 17

3.3 Organization design and structure ..................................................................... 18

3.4 Management Committee .................................................................................... 19

3.5 Technology Used ............................................................................................... 19

3.6 Major products and services .............................................................................. 20

3.7 SWOT Analysis of Rastriya Banijya Bank Limited .......................................... 21

3.7.1 Strengths of Rastriya Banijya Bank Limited .............................................. 22

3.7.2 Weaknesses of Rastriya Banijya Bank limited ........................................... 22

3.7.3 Opportunities of Rastriya Banijya Bank limited ......................................... 22

3.7.4 Threats for Rastriya Banijya Bank Limited ................................................ 23

3.8 Future plans and strategies ................................................................................. 24

CHAPTER FOUR ...................................................................................................... 25

ANALYSIS DONE AND REFLECTION ON INTERNSHIP ............................... 25

4.1 Introduction ........................................................................................................ 25

4.2 Activities performed in customer service department ....................................... 25

4.3 Reflection of the internship ................................................................................ 28

4.3.1 Organizational culture .............................................................................. 28

4.3.2 Change ........................................................................................................ 28

4.3.3 Learning objectives ..................................................................................... 29

4.3.4 Academic connection .................................................................................. 29

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 4.3.5 Personal development ................................................................................. 30

4.3.6 Problems solved .......................................................................................... 30

CHAPTER-FIVE CONCLUSION AND LESSON LEARNT ............................... 32

5.1 Lesson Learnt ..................................................................................................... 32

5.2 Conclusion ......................................................................................................... 33

Bibliography ............................................................................................................... 34

viii
 LIST OF TABLES

Page no.
Table 1: Time spend on each department ........................................................................... 4
Table 2: Classification of banks ........................................................................................ 11
Table 3: Classification of bank based on class ................................................................. 13
Table 4: Management Committee of RBB ....................................................................... 19

ix
 LIST OF FIGURE

Page no.

Figure 1: Gantt chart…………………………………………………………………..6

Figure 2: Organization structure of RBBL…………………………………………...18

x
 LIST OF ABBREVIATIONS

BBA Bachelors in Business Administration

TU Tribhuvan University

RBB Rastriya Banijya Bank

NRB Nepal Rastra Bank

CSD Customer Service Department

ATM Automated Teller Machine

ABBA Any Branch Banking Services

KYC Know Your Customer

SMS Short Message Service

CEO Chief Executive Officer

BOD Board of Director

BFIs Bank and Financial Institutions

FD Fixed Deposit

FOM Faculty of Management

SWIFT The Society for Worldwide Interbank

Financial Telecommunication

IT Information Technology

xi
 1

CHAPTER ONE
INTRODUCTION

1.1 Background

Tribhuvan University has designed various management degrees under Faculty of

Management (FOM). Among them, one of the outstanding developments is in the
form of Bachelors of Business Administration (BBA), which had been established in
2002. This program is introduced in a way so as to reduce the gap between theoretical
and practical knowledge provided to the students. The BBA program aims to
overcome the drawbacks of other existing management degrees of TU and hence
focuses on the development of the students through field visits, report preparation,
presentation and of course, internship program. The entire above mentioned and other
course matters help the educational institutions to produce the skillful, confident,
knowledgeable and dynamic human resource for this country.

The internship program is one of the important components of the 4 year BBA
program. It provides the platform for the BBA products to do the self-evaluation of
them in the practical business world and moreover, act as a feedback forum for the
policy makers of the Tribhuvan University to revise the course as per the requirement
Internship provides students hands-on work experience in a particular organization
and field. An internship is an extensive program through which an internee can learn
the practical aspects of what is taught between 4 walls of a classroom. It provides
golden opportunity to generate quality education because it enables us to learn,
observe and understand the real corporate world. Most importantly, the internship
could be regarded as the first step of career development.

For the partial fulfillment of the requirements for the degree of Bachelor in Business
Administration (BBA), every eighth-semester student should prepare an internship
report. This internship report is mainly focused on Customer Service Department of
customer service department of Rastriya Banijya Bank Limited.
 2

1.2 Objectives of the study

The internship program is undertaken for the partial fulfillment of the requirements
for the degree of Bachelors in Business Administration. The general objective of this
program is to make students familiar with the working environment and gain the
practical experience in the related field. This further helps the students to expose
themselves to the real world of the external environment about different aspects of
management where they can apply their theoretical knowledge. The main task of the
internship program is to make a study on the banking operations process, understand
the services provided to its customers, and have complete knowledge and functioning
of the related departments. The specific objectives are:

 To learn how to handle customer grievances regarding the various products

and services provided by the bank
 To examine various front office and back office activities being performed in
Customer Service Department.
 To know about various financial products and services provided by the bank.
 To know about the different strategy of Rastriya Banijya Bank Limited and
how is it successful in dealing with its customers.
 To help to develop the managerial skills within ourselves to be successful
managers in future.
 To be familiar to the banking practices, rules and regulations of Nepal.

1.3 Methodology

The study for making this report is mostly descriptive in nature where the facts and
findings are prescribed in a systematic manner. The information required for the
preparation of report has been collected from observation of the activities that are
performed in the bank and the personal interview and consultation with the staffs
involved in different departments of the bank. The secondary data are used in the
report are obtained from websites, brochures, annual report, and books.
 3

1.3.1 Organization selection

The beginning phase of an internship program begins with a selection of suitable

organization by the internee as per the requirement. The knowledge of real world
scenario is obtained from the organization. For selecting this organization curriculum
vitae, citizenship and recommendation letter from college are dropped in the various
Banks. In this process Rastriya Banijya Bank Limited of Dhulikhel branch has
accepted internee Application for the internship and gave me the opportunity to get
familiar with the bank. Internee was lucky to get the opportunity to work as the
Internee at RBB, Dhulikhel branch. This bank provided the great opportunity to learn
and gather experience about real banking environment that would be very helpful for
enhancing the knowledge about real world banking scenario.

1.3.2 Placement

Internee was placed in RBB, Dhulikhel branch. During the internship period, the
internee was placed in customer service department. The supportive and friendly
environment in the organization helped the internee to complete the internship period
through the proper guidance of the staffs of customer service department. Throughout
the internship period, internee got an opportunity to deal with sort of banking issues
prevailing in customer service department.

1.3.3 Duration of internship

According to the Faculty of Management, the duration of internship period has been
defined for eight weeks. The internee did her internship for about 8 weeks. The
internee started the internship in the bank at Ashadh 01 to Shrawan 24. During this
internship period of 8 weeks the internee was able to learn about the bank‟s culture,
work environment and the working procedure of the various departments of the bank.
This internship program has been very fruitful for the internee to get real life
experiences of the banking activities of the organization.
 4

Table 1 Time spend on each department

Departments Weeks

Customer Service Department 3 weeks

Loan Section 1 week

Administration 1 week

Cash Department 3 week

1.3.4 Activities performed in the organization

During the internship period, internee was placed in the customer service department,
cash department of Rastriya Banijya Bank Limited, Dhulikhel branch. Different
activities that were performed in customer service department and cash department of
the organization in this internship duration were as follow:

Customer Service Department:

 Opening Personal and Corporate Account

 Balance checking and signature verification
 Solving the various problems related to ATM cards.
 Helping the customers in filling up the various forms like account opening
form related
 Personal account, joint account, corporate account, ATM application form,
renewable of debit card application form; fixed deposit form, account closing
form, SMS banking form, internet
 Banking form, cash/cheque deposit slip, counters cheque.
 Performing the other task like filing, scanning, stamping, KYC form fill up,
register maintaining of account opening, SMS and internet banking, account
closed.
 Doing various back office work like filing of documents, register entry.
 Dealing with customer grievances and trying to solve their queries.
 5

 Registration of various old documents like cash voucher, cheque voucher,

account opening forms, ledger book etc according to their importance and
necessity.
 Printing and binding of cheque
 Issuing of cheque books
 Cheque registration
 Issuing bank statement of saving and current account.

Cash Department:

 Record the information regarding the account number, branch code and amount in
journal book.
 Precise the deviation that occurred in journal book.

Admin Department:
 Recording of letter in the register (Chalani Kitab).
 Sorting of Cheque books in terms of their date.
 Work related to Pension, ATM, Mobile Banking etc

Loan Department:
 Filling up the promissory note.
 Going to the loan site for verification of property.
 6

Figure 1: Gantt chart

Weeks 1 2 3 4 5 6 7 8

Departments

Customer Service
Department

Cash Department

Loan Section

Administration

1.4 Limitations

It is obvious that there arise some kind of limitation in everything with some
productive and beneficial outcomes and as limitations are the part of progressive
system, here are some limitations of the study:
 The time duration that has been provided was not sufficient to learn all the
activities held in the bank
 The banks staffs were preoccupied with their work so they had a little time to
interact with internee.
 It does not give detail view of the overall functioning of the bank since most
of the information is collected through personal experience and observation.
 This report cannot be generalized to entire banking industry since data is only
related to RBB, Dhulikhel branch.

1.5 Sources of data

Sources of data collection refer to the way of acquiring the related information from
different sources. By directly involving in the banking institution as an intern the
following primary sources and secondary sources of data collection:

Primary source:

• Direct personal interview with the related staffs

To collect the necessary information for this report asked many structured,
unstructured and practical questions to the relative staffs of the branch.
 7

• Unstructured interview with the clients

Clients are also the source of information and they provide the information based on
their perception towards the products and services. Visiting of different clients for
marketing purpose helps a lot for acquiring information and perception from existing
clients about the bank products and services.

Secondary source:

• Visited the various web site of Rastriya Banijya Bank Limited and other
commercial banks

• The articles and magazines are the other secondary source through
which necessary information are acquired.

• The brochures and the annual report of Rastriya Banijya Bank Limited.
 8

CHAPTER TWO

INTRODUCTION TO THE BANKING INDUSTRY

2.1 Introduction of bank

The life blood of trade, commerce and industry is the financial sector. The banking
industry is the backbone of modern business where development of a bank is highly
dependent on banking sector.

Banking transactions carried on by any individuals or firm engaged in providing

financial services to consumers, businesses or government enterprises. In the broadest
sense, banking consists of safeguarding and transfer of funds, lending or facilitating
loans, guaranteeing credit worthiness, and exchange of money. These services are
provided by such institutions as commercial banks, saving banks, trust companies,
finance companies and merchant banks or other institutions engaged in investment
banking. A narrower and more common definition is the acceptance, transfer and
most important creations of deposits. This includes such depository institutions as
commercial banks, savings and loan associations, building societies, and mutual

savings banks. All countries subject banking to government regulation and

supervision, normally implemented by central banking authorities.

Bank is a financial institution, which accepts deposits from the public in different
accounts and grants loan to individuals and corporations against their securities. The
difference in interest rate on lending and deposit –interest rate spread is the major
source of income for the bank. Interest on lending is higher than the interest rate on
deposits. It is an agent of its client, which remits money, collects incomes and pays
expenses on behalf of them. It performs a wide variety of functions, which provide
utility to the individual, corporation and public.

Some important definitions of bank are as follows;

 9

“A bank is an organization whose principal operations are concerned with the

accumulation of the temporarily idle money of the general public for the purpose of
advancing to others for expenditure.”

Kent

“Bank is an organization established for the purpose of exchange money deposit

lending and participation in transactions.”

-Commercial Bank Act

1974

So, it can be said that bank is just a mediator. It supplies money, borrows money and
creates profit for itself out of that money.

2.2 Origin of the word “Bank"

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 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
 10

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 History of banking in Nepal

In context of Nepal, the history of banking system is very difficult to trace as there is
very few evidences regarding the history of banking. The history of banking in Nepal
is rather slow in evolution. The banking system in Nepal is still in the evolutionary
phase. Banking is concerned with debt and the history of debt goes back to 879 A.D
when Nepal Sambhat was formed. A rich person named „SankhadharSakhwa‟ paid-
off all the debts of people residing at the country at the time. Nepal Sambhat was
formed as a sign of respect for SankhadharSakhwa. This proves the history of money
lending function at the time.

During the 11th Century, JayasthitiMalla, one of the rulers of Malla Dynasty,
classified the people of the country into 64 classes based on occupation and one of the
classes included „Tanka Dhari‟ which meant moneylenders. This evidence proves the
existence of money lending during the medieval period of Nepal.

In the year 1877 A.D, Tejarath Adda was established in Kathmandu. The major
purpose of Tejarath Adda was to provide loans to people against the deposit of gold
and silver as collateral. Although it provided loan, it cannot be considered a bank as it
did not accept any deposits. But the establishment of Tejarath Adda is beginning of
the organized financial institution.

In modern history regarding banking, Nepal Bank Ltd was the first modern bank
which was established in the year 1937 A.D. Nepal Bank was established as semi-
government bank with authorized capital of Rs. 10 million and paid-off capital of Rs.
 11

892 thousand. Nepal Bank was the first proper financial institution established in
Nepal.

Nepal Bank was the only bank of the country until the foundation of Nepal Rastra
Bank in the year 1956 A.D. Nepal Rastra Bank is the central bank of the country. Due
to the absence of central bank in the country, Nepal Rastra Bank was formulated to
play the role of central bank.

Nepal Banijya Bank is another commercial bank established in 1965 A.D. It is only
the second commercial bank of the country at the time. After the establishment of
Nepal Banijya Bank, other banks like Agriculture Development Bank were also
established.

2.4 Present situation of banking industry in Nepal

Today, there are various types of bank working in modern banking system in Nepal. It
includes central, development, commercial, financial, co-operative and Micro Credit
banks. As of 2017, there are 28 commercial banks, 55 developmental banks and many
other finance companies and micro credit banks in Nepal. Technology is changing
day by day and new technologies are used to operate the banks efficiently.

ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc. are
some services integrated in banking system in Nepal which helps both customer and
banks to operate and conduct activities more efficiently and effectively. The
categories of banks in the context of Nepal are shown in the table.

Table 2 Classification of Banks

S. Type of Bank Number

No.

1 Commercial Bank (Class A) 28

2 Development Bank (Class B) 72

3 Finance Companies (Class C) 42

4 Micro Credit Development Bank (Class D) 42

 12

The main challenge to the commercial banks at present is the competition. For long
period of time there were only two banks i.e. Nepal Bank Ltd. and Rastriya Banijya
Bank Limited Usually commercial banks were classified into two ways. They are
domestic and joint ventures. Domestic commercial banks are facing maximum
competition compared to the joint ventures foreign banks due to the nature of work
and social responsibility.

There are different problems faced by the Nepalese Bank. Some of them are listed
below:

 Limited Resources

 Borrowing by the government

 Unpractical loan procedure

 Slow development of securities market

 Low banking habit

2.5 Types of bank in Nepal

The Bank can be classified as:

 Central bank
 Commercial bank

Central bank

Central Bank is a banker of a bank that formulates and implements monetary policy
and issues license to the other financial institution, inspects, monitor and supervise
them and act as a banker, advisor and financial agent of the government. A central
bank plays an important role in monetary and banking system of a country. It is
responsible for maintaining financial sovereignty and economic stability of a country.

Commercial bank

Commercial Bank is a major depository institution that collects deposits from the
public and facilitates loans to the people in need. They accept deposits in different
types of demand deposit, savings deposit and time deposits. The banks provide
interest in savings and time deposit but they do not provide any interest in demand
 13

deposits. Similarly, they grant different types of consumer and commercial loans to
business firms and individuals. The commercial bank plays an important role in
mobilization the sources and to convert them into active capital, which is very
important for the rapid growth and development of the economy.

The commercial bank can be further classified as:

Table 3 Classification of bank based on class

Class Banking and financial institution

Class A Commercial Bank

Class B Development Bank

Class C Finance corporation

Class D Micro Credit Development Banks

Functions of commercial Bank

The primary functions performed by commercial banks are as follows:

 Collect deposit in various types of account.

 Provide credit in form of various loans, overdraft and co-financing to industry,
commerce, agriculture, export and service.
 Remit funds.

Subsidiary functions are as follows:

 Invest in government securities, treasury bills etc.

 Deal in foreign exchange.
 Provide agency functions such as collection of cheques, bills promissory
notes, etc.
 Executive standing instructions such as payment of rent, insurance premium,
income tax, etc. on behalf of their customers.
 Involve in collection of dividends and interest on shares and debentures.
 Purchase or sale of securities.
 Act as trustee when so nominated.
 Act as customer‟s correspondent or representative in dealing with other banks.
 14

 Underwrite shares floated by government bodies and public bodies.

 Supply trade information and statistical data.
 Involve in LC & Guarantee issuance, purchase or sale TC and Circular Notes,
etc.
 Act as a referee with regard to the financial status of customers.

Importance of commercial bank

Today banks have gained real trust in the public. The functions of bank are not
confirmed to just accepting deposits and giving loans. They render a wide range of
services covering different problems of society also banking system is the backbone
of economic development and it provides various services to make a strong financial
strength. So it plays a very important role in a country, which are as follows:

i. Capital formation
Capital is the main source for the development of the country. Banks collect deposit
form public and makes huge capital for investment in productive sector.
ii. Economic development
Banks provides fund for operation, expansion and development of trade and industry,
which promotes economic development of country.
iii. Transfer of money
Bank transfers money through one place to another place by using different means of
payment that are telegraphic transfer, mail transfer, bills of exchange, bank draft,
letter of credit, promissory note, etc.
iv. Creation of employment
Bank provides loans to the farmers, labors, industrialists and other unemployed
people to fulfill their objectives. So, it creates employment and helps to minimize
unemployment problem of the country.
v. Safety of wealth
Bank provides safety of wealth against theft and robbery. It also manages the safety
locker for customers to put their valuable documents and material for safety.
 15

Future of Commercial Bank in Nepal

The present development and remarkable progress is not the optimum aim of the
banking industry. The continuous changes which is taking place in the banking
industry. The continuous changes which are taking place in the economic and
financial milieu of the country, the areas needing special attention for improvement in
the commercial banking sector are the following:

 Ensuring that the banks attract quality management and service.

 Protecting and building up their deposit base.
 Building their capacity for creating products in different areas of operation:
 Strengthening their ability to manage credit in a second way as well as
maintaining compatibility to the privatization, joint ventures, industrial
policies of the country etc.
 Enhancing their ability for providing services as per customer needs.

In such a situation, the role of the commercial banks cannot be under emphasized due
to its significant contribution in the development of nation's economy as well as its
growing importance to enter in those sectors to fulfill the demand of the customers
where services are inadequately served or not.
 16

CHAPTER-THREE
INTRODUCTION TO THE ORGANIZATION

3.1 Introduction of Rastriya Banijya Bank Limited

Rastriya Banijya Bank Limited (RBBL) is fully government owned, and the largest
commercial bank in Nepal. RBB was established on January 23, 1966 (2022 Magh 10
BS) under the RBB Act. Earlier constituted under RBB act 2021 with the full
ownership of the government of Nepal, the Bank has been running under Bank and
Financial Institute Act (BAFIA) and Company Act (CA) 2063 at present. The Bank
licensed by NRB as a 'A' class commercial Bank of the country, has grown up as an
indispensable component of the Nepalese economy.

RBB has been contributing to socio economic development of the country for the last
five decades. The Bank has currently entered into 51 years of service. RBB provides
various banking services to a wide range of customers they include elite to poor
individuals, institutional customers, and the customers from industry / business
communities.

RBB, which has made glorious history of contributing for the monetization of the
economy, eliminating dual currency in the market, initiating preliminary financial
literacy, and help flourish industrial, commercial and financial sector of the country
has now emerged as a modern and strong financial institute of the country. The Bank
with 2600 hands has expanded its wings in the most part of the country through
multiple distribution outlets of 174 branches, 17 counters, 28 Branch Less Banking
(BLB) and 103 ATMs. The Bank with the highest public confidence- reflected in the
highest deposit base and growing demand for branch establishment in the various
parts -has stood as a pyramid in the financial arena of the country. The Bank with as
many as 1.7 million satisfied /direct customers ranging from poor to elite ones and
millions of indirect ones has drawn important imprint in the picture of country's
economy through its significant involvement in the best use of its resources to
enhance the production, income and employment opportunities.

The head office of the bank is located at Singhdurbar, Kathmandu. The Board of
Directors is responsible for policy making & guidance to the management. The
 17

government nominates all board members including the Chairman. The executive
power is vested in the Chief Executive Officer (CEO). The Bank has 19 departments
in its head office and 5 regional offices across the country.

RBB has the largest branch network in Nepal, covering 66 branches in the
mountainous region, 69 in Terai region, and 23 in the Kathmandu Valley. The Branch
Operations Department is responsible for supervising the 174 branch network. The
Internal Audit Department monitors the work of the branches and regional offices.

The bank is also in the frontline towards fulfilling corporate social responsibility.
The bank has been working as a development partner by acting as a fund
administrator of Poverty Alleviation Fund (PAF). Similarly, the bank has been
working as a chief administrator in the Educational Assistance Project (run with the
assistance of World Bank) aimed at assisting poor and diligent students learning at
higher secondary and bachelor level.

The vision and mission of the Rastriya Banijya Bank Limited are:

Vision: "To provide innovative banking services to everyone, every time and
everywhere for the economic development of the nation.”

Mission: "To provide easy and innovative banking products and services for our
customers by implementing one stop service concept from our wide network using
our modern technology qualified human resources in competitive environment. We
always look for the benefit of the local communities supporting entrepreneurship,
social responsibility and economic prosperity of the nation."

3.2 Objective

The major objectives of RBB are:

 Focus on providing innovative financial services.

 Increase in capital base of the Bank by meeting the minimum capital
requirement.
 Business growth and increase in market share.
 Enhance operational efficiency.
 Sustainable increase in profits.
 Focus on empowerment of deprived class.
 18

3.3 Organization design and structure

The organization structure of RBB is shown in figure below:

Figure 2: Organization structure of RBBL

BOARD OF DIRECTORS

Financial Directive Employee management &Service

Committee Committee

Auditor Committee Risk Management

Committee
Internal Audit Department

CEO
Assets and Liabilities
Management Committee
Management Committee
Executive Director

Deputy General Manager Deputy General Manager Deputy General Manager Deputy General
Manager

IT Agro & Social Corporate HR Internal Branch

Department bank & SME Department Reconciliation
Departmen Department
Compliance General
Treasury
department service Finance
Training & Department
Department
Developm
Branch ent
Loan recovery &
Operation
Restructuring Marketing &
Infrastruct
Department Development
RO RO ure &
Department
Biratnagar Kathmandu Consortiu
E-Banking
m MIS &
Department
RO Birgunj RO Pokhara Budgeting
Department
Legal
Department
RO Main Branch
Nepalgunj Office
 19

3.4 Management Committee

The management committee of Rastriya Banijya Bank (RBB) is as follows:

Table 4 Management Committee of RBB

Chief Executive officer Kiran kumar Shrestha Coordinator

Acting Deputy Chief Executive Bishnu Prasad Baidya Member

Officer

Acting Deputy Chief Executive Bhupendra Pandey Member

Officer

Deputy General Manager Sushil Shrestha Member

Deputy General Manager Kaviraj Adhikari Member

Acting Deputy General Manager Keshav Prasad Member

Lamsal

Acting Deputy General Manager Tek Raj Joshi Member

Dept. Chief Naresh Raj Aryal Member

Dept. Chief Uddhav Prasad Member Secretary

Khanal

3.5 Technology Used

RBB has installed PUMORI Plus-III as banking software throughout the branches to
carry out all the banking activities. PUMORI Plus is an on-line multi-user; multi-
currency integrated banking system of international standard developed by Mercantile
Office Systems, Nepal. It integrates all functions of front office and back office as one
package. The system runs on Windows NT network and provides adequate security
features for keeping smooth operation of the system.
 20

3.6 Major products and services

The major business or services of RBBL includes accepting deposits in various forms
as per the nature of the deposit accounts. Similarly, RBBL gives loans to its customers
under the schemes formulated. It also provides internet services, student financial
assistance fund, mobile pay services, few trade related services, etc. Major products
and services can be highlighted as follows:

 Deposits
The bank offers a wide array of deposits schemes in both local and foreign
currencies to help the customers earn competitive interest rates in order to
maximize higher returns on investments, The deposits include current deposit;
fixed deposit such as normal fixed deposit, RBBL special fixed deposit, RBBL
corporate fixed deposit; saving deposit like normal saving, student saving,
karma yogi saving, mahalaxmi saving, chunamuna saving and, RBBL special
saving.

 Loans
RBBL provides credit on competitive terms by way of term loans as well as
lending for financing working capital needs of all kinds of productive and
income generating activities. The loans provided are consumer/personal loan,
corporate loan and other categories of loans. Consumer/personal loans
includes various forms of loans that are provided to the individual consumer
for their personal use such as RBBL home loan, RBBL auto loan, hire
purchase loan, education loan, loan against gold and silver, etc. Likewise,
corporate loan is provided to the business houses or business personnel for
business use like fixed term loan, working capital loan, overdraft, demand
loan, Letter of credit (LOC), bonds and guarantees, etc.
The other forms of loans provided by the bank include consortium loan,
housing/ real estate loan, industrial/ commercial loan, priority sector loan
(agriculture, cottage, industry, etc.) and RBBL project loan.
The other services provided by RBBL are as follows:
 21

 ATM facility
The branch provides the ATM facility to its account holders. Visa debit cards
with PIN (Personal Identification Number) are issued to customers to enable
24-hour ATM facility. The basic functions of RBBL ATM are drawing cash,
dispensing cash enquiring balance in the accounts, accepting requests for
check books and printing of statement.

 SMS banking
SMS Banking service is another facility provided by the branch to its
customers. Under this arrangement, customers can know the balance of their
account through SMS without human assistance. RBBL is in the process to
strengthen this facility towards check book requisition, statement request and
standing institutions.

 Remittance
The branch also provides remittance service and facilities of transferring fund
through online computer system. This special feature helps the tourists and
especially the Nepalese workers abroad to transfer funds to Nepal as and when
required the receiver can get the transferred money upon the completion of a
simple form requirement without any hassles and within no time. Remittance
service is provided through draft, SWIFT and telegraphic transfer, mail
transfer, fax transfer.

 Mobile Pay Service

RBBL also provides the facility to recharge Nepal Telecom‟s prepaid and
post-paid mobiles as well as CDMA postpaid mobile. Also the bills of landline
and ADSL internet can be paid directly by using the mobile pay service
provided by RBBL by following simple procedure from your mobile phones

3.7 SWOT Analysis of Rastriya Banijya Bank Limited

SWOT analysis indicates the analysis of Strength, Weakness, Opportunity and Threat
of an organization. Since, these four factors are essential to know the real position of
 22

an organization, it is necessary to carry out SWOT analysis of that organization

regularly.

Strengths and weaknesses are the internal factors of an organization. They can be
controlled and monitored by the organization itself. First of all, let‟s deal with these
two factors of Rastriya Banijya Bank (RBB).

3.7.1 Strengths of Rastriya Banijya Bank Limited

 Sufficient Paid-up capital.

 High deposits.

 High trust of public.

 High amount of total assets.

 Low fees and commissions.

 Less borrowing i.e. liabilities.

3.7.2 Weaknesses of Rastriya Banijya Bank limited

 Higher staffs and other operating expenses.

 Less profit.

 Low volume of loan disbursement.

 Less interest income.

 High non-performing loan to total loan ratio.

3.7.3 Opportunities of Rastriya Banijya Bank limited

Opportunities and threats are the environmental factors that affect the organization.
Organization cannot run away from these factors but can make proper deviation in its
path for not to be affected by these factors. Now let‟s know about these factors of
RBB.
 23

 Opportunities of market expansion

Since RBB has the highest amount of capital and assets also, market expansion is still
possible. For this, RBB needs to do a research to find the potential places where it can
expand its business.

 Attraction of large number of customers

Being a government owned bank, for customers, there is no risk in deposit and in
lending from RBB. So, it can always attract large number of customers.

 Asset utilization

Highest amount of loans and highest amount of deposits are in RBB, yet earning is
not highest. That‟s why, if assets are utilized properly, it can earn more profit than
other banks.

 Effective utilization of manpower

It is true that RBB has the highest number of employees because its staff‟s expenses
are highest. And the reality is that there is not proper utilization of manpower it
possesses. If RBB can manage its employees properly, then its goodwill as well as
income will be high.

3.7.4 Threats for Rastriya Banijya Bank Limited

 Technological threat

It is the threat caused by the technological advancement. If RBB fails to introduce

new technologies in its activities, then it will be difficult for its survival. So, as per the
time, technology should be changed. And manual work should be minimized.

 Threat of customer dissatisfaction

Even today, most of the offices of RBB are not customer friendly. Vouchers are not in
English language because of which new generation feels difficult to fill. Customers
find difficult to go to the different departments because the name of department is not
written. Due to these things, customers may switch the bank. So, RBB should be
careful about it.
 24

 Threat from multinational Banks

Today‟s world is the world of globalization. Nepal is also attracting towards

globalization and liberalizing its trade policies. So, soon or less, multinational banks
will start their investments in Nepal. RBB should be prepared for this.

3.8 Future plans and strategies

Future plans and strategies of RBB are as follows:

 To adopt a strategy to provide swift service to our customers.

 To address delays in service delivery.
 Focus on business expansion of the bank.
 Expand investment in areas such as agriculture and small and medium
enterprises and concentrate on solving problems within the bank.
 Give priority to human resource management.
 25

CHAPTER FOUR
ANALYSIS DONE AND REFLECTION ON INTERNSHIP

4.1 Introduction
Various activities were performed in the internship period; the placement was made in
the Customer Service Department, Administration Department and Loan Department.
The activity in RBBL is carried out by using Pumori banking software. Activities
performed during internship period under different departments are analyzed as
follows:

4.2 Activities performed in customer service department

Customer Service Department is the first impression of Bank to the customers. It is

because while entering to the bank, customers reaches to the CSD at first and ask for
help. Activities performed in CSD are as follows.

1. Counseling
CSD is also known as help desk. So, customers can ask anything related to the
bank and its functions. Answer was provided to the customers properly and
politely. Information related to opening of an account, interest rates, loan
procedures, etc were given to the employees.
2. Balance inquiry
Customers generally ask the balance available in their account. It was
informed to the customers after looking the account balance of particular
customer with proper respect.
3. Bank statement
Usually, bank statement is provided to the customers quarterly. But sometimes
it is to be provided if customers ask for it. It is the printed document of the
activities performed in their account, i.e. deposit and withdrawal.
4. Issue of cheque
After the previous cheque book is finished, customers ask for the new cheque
book submitting the slip provided by the bank with authorized signature. New
cheque book should be given to the customers after proper inquiry and
verification of signature.
 26

First of all, signature, name and account number was verified. Secondly,
cheque number was posted in the software with the proper supervision of CSD
employee. And at last, check was posted in the ledger and was issued to the
customer.
5. Opening of new account
With the proper verification of all required documents, new account is opened.
It is very essential to know all the details of customers before opening of an
account. While opening the account, bank uses Know Your Customer (KYC)
policy. This policy helps the bank to get all the related information of its
customer‟s. This was one of the main functions of CSD.
6. Checking the documents
I was also required to find if any required documents (photos, citizenship
copy, passport, nominee‟s documents, student identity cards, photos of parents
and birth certificates of minor accounts, income tax etc.) are missing.
7. Distributing cheque books
I was also supposed to distribute the cheque books to the customers. It is
necessary that the customer has to come to receive the cheque book. But in
case of company, the cheque books can be handed to the people the customers
assign as their agent. The agents have to bring the letter provided by the
company along with the additional cheque request form.
8. Filing
Filing is one of the most important jobs assigned to me. All the files or forms
related to the customers have to be properly filled up and put in the respective
file and has to be placed in the specified drawer. I was asked to search for the
particular file and have to place it back in same manner.
9. Scanning
I was assigned to scan the specimen of account opening form, debit card form
which includes photo, signature, and citizenship of the account holder.
Scanning of any documents is assigned staffs of any department.
10. KYC update
Banks always care about its customers and want to be in regular touch with
them. So they always keep track record and keep themselves updated.
Therefore in every 2-3 years they update account holder‟s account. For that
customer need to show the required documents and fill up a form. I was
 27

assisted in KYC update but only after proper verification of the account
holder.
11. Closing of an account
To close an account of customer, s/he must return the cheque book and ATM
if any. An account closing form must be filled by the customer mentioning the
reason for closing of particular account. After deducting the banking charge,
remaining amount of the particular account is returned to that customer.

The above mentioned things were learnt in CSD.

Activities performed in deposit counter

The activities performed in deposit counter and cheque counter are:

1. Voucher posting
Voucher posting is one of the easy jobs for interns in the bank. The interns are
allowed to post deposit vouchers in the register. All the deposits of collected by
the bank in a day are posted in the deposit resister. While posting voucher, name
of depositor, account number and amount deposited are recorded. The main
purpose of the voucher posting is to identify any mistake made by the deposit
employee as total amount deposited into the system and the total amount
registered in the deposit register are compared at the end of business hours.
Both amounts should match else it would signify the mistake made by the intern
or the deposit employee and are corrected.
2. Cheque posting
The cheque posting is also similar to the deposit voucher posting. The purpose
of the cheque posting is same as the voucher posting. In cheque posting, cheque
cashed out by the customers is recorded. While posting cheques, name of the
person to whom account belonged to, amount cashed and account number is
recorded.
3. Cash sorting
While working in voucher and cheque posting, I had to also sort cash for ATM
during free time. Cash sorting is done to separate new money out of bundles for
ATM.
 28

4.3 Reflection of the internship

4.3.1 Organizational culture

I completed my internship program from Rastriya Banijya Bank Limited- one of the
pioneer Bank in the country with the history of nearly a half century. Earlier
constituted under RBB act 2021 with the full ownership of the government of Nepal,
the Bank has been running under Bank and Financial Institute Act (BAFIA) and
Company Act (CA) 2063 at present. The Bank licensed by NRB as a 'A' class
commercial Bank of the country, has grown up as an indispensable component of the
Nepalese economy.

After working there for 8 weeks as an intern I realized that RBBL is an amazing place
to be and work. The employees there were more like a family member. They are very
friendly and easy going. Along with being friendly they were highly dedicated
towards their work and punctuality. The organization has a friendly environment
which helps to maintain a good relationship between employee and employer. The
coordination among the employees is highly appreciable. Everyone behave politely
which helps to create a homely environment. During my internship I observed various
activities performed in the bank and every work was carried in a smooth manner.

However being a government organization and having elderly employees the work is
carried out in a bit slow manner. The employees take time more than usual to cope up
with situation and adopt the environment and technology. Apart from that everything
is very appreciable. They constantly tried to teach us new things and were never rude
if something was asked to them.

4.3.2 Change

I used to always regard banking sector as one of the complex working environment. I
always had a kind of fear to do the banking transactions. Change is something that
gives a completely different form or appearance to our thoughts. After everything we
see or go through every situation we learn something new and that brings changes in
our behavior. After the completion of my internship I learned various things that
directly brought changes to my daily activities, performances and perception
regarding banking system. Now I know how to work in a banking culture, understood
their norms, values and culture.
 29

I have become able to deal with customers in confident way. The internship has
helped me to improve my communication skills. Now I have become more
responsible. I have learnt to work on time and have become punctual. I have
developed good communication skill. I have learned about human behaviors. I know
how to deliver things to different nature of people. Along with that I have developed
the habit of working on the stressful environment. Before internship, I had little
patience on doing tedious work. But now I can spend more time in working. I can
concentrate on my work and finish the task given to me on the deadline.

4.3.3 Learning objectives

One of the major reasons of joining internship program for me is learning new things.
During my eight weeks of internship I got to learn lot of useful things that can help
me in my career. The skills and qualities that have been developed in me are as
follows:

 I learnt about the entire banking procedure, how a bank functions.

 I learnt the importance of maintaining privacy of customers account.
 I learnt how to work in a team and show the leadership quality.
 I learnt how to communicate and negotiate with the customers.
 I learnt about the organization culture, norms, values and structure.
 Lastly, I learnt to relate theoretical knowledge with the practical work
environment

4.3.4 Academic connection

Theories are developed from the testing of phenomena several times. This
phenomenon consists of facts and truths that have been collected from the universe. It
is quite obvious that the facts are not understood in the same way as they were learnt.
I also faced this complexity while trying to implement the theoretical knowledge into
practice. Following were the discrepancies or mismatch between theory and practice
as experienced:

 In theories that I had learned that the bank and financial institution are free
from nepotism and favoritism but these things still prevail in the bank.
 The etiquettes of good governance and corporate culture were observed if in
a different.
 30

 Most of the banking functions were not understood without the help of some
trainings; only theoretical knowledge was not sufficient.
 Customers were not treated as gods as we normally talk about their
importance in business.

4.3.5 Personal development

I still remember my first day of internship where I was so nervous about the work
culture of the banking organization. And today I compare my thoughts regarding
banking system it's totally different. Though 8 weeks of period is a short time frame
for development of a personality, I learned to face and handle problems effectively
and efficiently. Working in bank has made me more confident than before. It has
made me face lots of challenges which I learned from working in CSD department. I
also can deal with the various situation that comes in my way calmly. Banking
transactions are always very crucial and hectic. Employees work under lots of
pressure with customer‟s demands and complaints on the other hand. Despite of all
those pressure, I learnt to act in a formal manner. Also I learned the value of time and
money. I also have been able to manage the time efficiently. One needs to be
punctual. It is one of the major factors how an individual is judged. Also you need to
be presentable. Communication skills, analytical skills, friendly nature has been
developed. I have learnt socializing with the people, dealing with the co-worker or a
senior, which makes the working environment friendlier. I developed habit of
working with different people from diverse background I am now able to manage my
time and work efficiently and take decisions.

4.3.6 Problems solved

It is not necessary that every day the banking transactions are the same. It depends
upon the customers that visit the banks. During my 8 weeks of internship program, I
had to face and deal with lots of situations. While working in different departments
following are the problems that I helped in solving:

 Made the customer comfortable to share their queries.

 Provided necessary information to the account holder about their account
status but only after necessary verification.
 Checked every single documents and forms thoroughly and informed the
customer to update their accounts documents if any.
 31

 Made customer confusion clear regarding ATM issues and mobile banking
and handled their problems.
 Handled customer‟s complains regarding the deposit variations.
 Managed and arranged the checks properly so that it can be presented when
needed.
 32

CHAPTER-FIVE
CONCLUSION AND LESSON LEARNT

5.1 Lesson Learnt

Involving as an internee at RBB was truly an amazing experience. During the

internship period I had a great opportunity to learn about so many things that have
practical implications in my career building. With the acquaintance of knowledge
regarding the dealing made by the institute a clear glance of suitable working
environment for the staff and the customers who was also visible within the internship
period.

The internee learnt the operation of banking in general after doing internship in RBB.
It teaches various banking activities along with practical knowledge and patience to
handle task in complex situation. Internship brings change in attitude and behavior of
the intern. Internship increases the professionalism in intern. The intern gain
professional experience in an occupational area they are considering by providing
practical exposure to real work scenario. The lessons that the intern learnt during the
time of internship are as follows:

 Ability to Work in Team

 Development of Analytical Skill

 Good Communication Skills

 Experience of Working in Real World Scenario

 Patience and Time Management Skill

 Work Ethic

 Responsibility Towards Work

 Strong Self-Confidence
 33

5.2 Conclusion

Banking sector is rapidly developing in Nepal in spite of being one of the

underdeveloped nations. Banking is a backbone of the economy of the nation and is
constantly developing. Banking sector has higher potential and better scope for a
career development.

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

knowledge that is learnt academically. Not only that, it gave various opportunity for
the intern to develop various skills and other practical knowledge as well. Similarly,
the interns also got the insight of the working environment of the organizations and its
scope for career development. Internship also managed to develop relationships with
the employees of the bank as well as other people.

The internship gave internee the perfect opening to plant my acquaintance in the
appropriate field. It helped intern to apply the year‟s long theoretical lessons into
practical area. Further, in past 8 weeks, intern learned to work under pressure and
broadened my knowledge, vision, ability and confidence to perform in real working
upbringing. It was a great chance to gain practical knowledge of banking sector.
Beside this, the supervisors were extremely helpful in guiding on our internship
program.

It was the great experience working as an intern in Rastriya Banijya Bank Limited.
The operational environment was friendly. There was good communication and
healthy relationship in between the different levels of staffs. The author was able to
find out various services offered and facilities provided by Rastriya Banijya Bank
Limited. Working as an intern mainly provided us an opportunity to learn about
practical implication in our career building hence it is a significant platform for our
future career.
 34

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