CHAPTER ONE INTRODUCTION

1.1.

Background of the study

Internship can be classified as one of the methods of on the job training. It provides real work experience to those looking to explore or gain the relevant knowledge and skills required to enter into a particular career field. It is relatively short term in nature with the primary focus on transferring what has been learned in the classroom by applying it to the real working environment. Moreover, internship is an excellent way to begin building those all important connections that are invaluable in developing and maintaining a strong professional network for the future. Interns generally have a supervisor who assigns specific tasks and evaluates the interns overall work. The tasks assigned are generally focused on educating the intern about the various procedures and policies of the organizations respective departments in which the intern is placed. In addition the minor level works may be assigned in order to make the intern familiar with the working environment. On the other hand, evaluation may be carried out daily, weekly or monthly by the supervisor and this evaluation may be reflected in the performance report of the intern. And generally the students who work as an intern receive academic credit for work experiences. Thus, internship is a process of education where educational institutions and the business organizations come together to offer meaningful, career-related work experience to students, while simultaneously providing an excellent source of highly-motivated, careerminded individuals for employers. This internship program was carried out for the partial fulfilment of BBA-BI program conducted by Pokhara University. It is of three credit hours and is to be carried out for the duration of six to eight weeks. This project was mainly assigned to enable the students to gain an understanding of the practical implication of the academic knowledge learnt through various courses in college.

1.2.

Purpose of internship
Internship helps to strengthen the students' personal values and career objectives through an improved understanding of themselves and the work environment.

To assist students in identifying and acquiring the skills needed to enter a chosen field.

To provide the student an opportunity to apply his/ her theoretical understanding and knowledge gained in college to the real working environment.

To provide practical knowledge about the working procedures of the organization and enable the intern to reconcile the differences in theoretical knowledge and practical environment.

To allow students to meet and learn from professionals in the field and develop a network of contacts.

1.3.

Objective of the study

The major objective of the internship program was to expose intern to the practical working environment and help him/her in understanding how can the theoretical knowledge gained thorough years of studies be applied to the real world and also reconciling any discrepancies between the two extremes. In addition, since banking institution was chosen, the another main objective was to get familiar with the working of such rapidly growing industry of Nepal. The other objectives were: To broaden the understanding of banking activities and its various procedures. To link the various financial and accounting concepts and theories learnt with the standard operating procedures of various functional departments. To understand how day to day activities and transactions are properly managed by the authority in charge leading to smooth function of every department in a bank.

1.4.

Organisation selection

For the purpose of fulfillment of academic requirement for the degree of Bachelor in Business Administration in Banking and Insurance, the internee has selected banking institution as this institution seemed more relevant for the internee, having major

concentration on banking and finance sector, for increasing his/ her knowledge and understanding of the subject matter. Thus, NDEP Development Bank Limited was selected, as this bank is a perfect platform for the carrier growth and development. It also facilitates every kinds of knowledge about the corporate world and the internee could also know about the core functioning of development bank.

1.5.

Placement

As a part of the internship program, the intern was assigned to the various functional department of the bank so that a complete understanding could be gained. Thus, the intern was placed in card department, cash and remittance department, customer service department, credit department, accounts and treasury department and administration department.

1.6.

Duration of internship

As per the requirement set by the faculty of management, Pokhara University, for the partial fulfillment of Bachelor in Business Administration in Banking and Insurance degree, students were required to perform as an intern in an organization for a period of six to eight weeks. However, due to time limitation, the intern conducted the internship program for six weeks only. The time duration for which the intern been placed in various departments of NDEP Development Bank can be detailed out as follows:

Table 1.1: Duration of internship Name of the department Card department Cash and remittance department Customer service department Credit department Accounts and treasury department Administration department Time duration 1 week 1 week 1 week 1 week 1 week 1 week

1.7.

Limitation of the study

The internship report has been prepared on the basis of observation and practical exposure to the real working environment. Although this report aims to best describe the working situations in which the internee has performed his/ her duties, there are various limitations:
The time period of one week per department, assigned by the supervisor, during which the internee was placed in various departments of the bank one after another was not sufficient to understand the functioning of the department on a full basis. As a part of the banks policy, the interns were not allowed to access the system which limited the analysis that could be carried out. Thus basing the most part of the study on observation only. This study is solely based on personal observation, judgment and analytical abilities of the internee so the context of study may differ from similar studies conducted.

CHAPTER TWO INTRODUCTION OF THE ORGANISATION

2.1. Introduction of bank industry in Nepal
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. In Nepal, banks and financial institutions are established as a public limited company under Companys Act and are operated as per Bank and Financial Institution Act 2063. Furthermore, they are regulated by Nepal Rastra Bank. The categorization of banks and financial institutions in Nepal are as follows: Class: "A" (Commercial Banks) Class: "B" (Development Banks) Class: "C" (Finance Companies) Class: "D" (Micro Finance Development Banks) Non-Government Organizations (NGOs) ( Licensed by NRB) Saving and Credit Co-operatives(Limited Banking) (Licensed by NRB)

2.2. Definition of development bank

Development bank is an institution that provides financing and advice for development purposes in the country. It is dedicated to fund new and upcoming businesses and economic development projects by providing capital. Thus, development bank is a national or regional level financial institution designed to provide medium- and long-term capital for productive investment in an economy.

2.3. Introduction of NDEP Development Bank limited

NDEP Development Bank is a national level development bank established as national level "B" category financial institution under Bank and Financial Institution Act, 2063 and started its banking operation from Ashad 32, 2063. The Bank has its Registered

Office at NDEP Building, Bina Marg, Lal Darbar, Kathmandu, Nepal and providing modern banking services from 22 point of representation and 8 ATM counters.

2.3.1. Mission of the bank NDEP Development Bank aims facilitates financial support for the promotion, development and growth of agriculture, industries, services, trading, natural resources, hydropower etc. in both rural as well as urban areas that creates employment and contribute in nations development.

2.3.2. Main objectives of the bank NDEP Bank tends to promote national economy, society and individuals. Increase market share by following disciplined growth strategy. NDEP Bank wants to develop a customer oriented service culture with special emphasis on customer care and convenience with quality banking services. Entrepreneurship development Develop innovative products and services to attract target customers and enter into new market segments. Providing employment opportunities along with career development plan for the employees of the bank. Proper retention and mobilization of capital in different important and profitable areas. Explore new market segment for expansion and profitability.

2.3.4. Capital Composition Authorized Capital Issued Capital Paid up Capital Rs. 128 Crores Rs.64 Crores Rs. 58.24 Crores

2.3.5. Shareholders Structure Promoter's Share General Public 60% 40%

2.3.6. Promoters Employee Provident Fund Bhatbhateni Super Market & Departmental store Pvt. Ltd. Bhatbhateni Jewellers Pvt. Ltd. Milan Investment Company Pvt. Ltd. Shanta Investment Pvt. Ltd.; and Professionals and Eminent Business Personalities.

2.3.7. The board of directors The Board of Directors is represented by minimum of one director from each of the subgroup of the promoters. The current composition of the BOD is as follows: Table 1.2: Board of directors of NDEP Development Bank Name 1. Prof. Dr. Subarna Lal Bajracharya 2. Dr. Raju Bahadur Shrestha 3. Mr. Man Mohan Krishna Shrestha 4. Mr. Bajra Gurung 5. Mr. Kishor Malla 6. Mr. Ramesh Kumar Niroula 7. Mr. Sudan Ratna Bajracharya Designation Chairman Director Director Director Director Director Director

8. Mr. Yam Kumar Shrestha 9. Mr. Surendra Man Shrestha

Director Director

2.3.8. Management team The management team of NDEP development bank consists of: Table 1.3: Management Team Name Mr. Bharat Lal Bajracharya Mr. Rajendra Lal Bajracharya Mr. Kiran Ghimire Mr. Bibek Man Singh Shakya Mr. Nabin Muni Bajracharya Mr. Umesh Prasad Mainali Designation Chief Executive Officer Assistant General Manager Head: Compliance & Internal Audit Head: Business Development Head: Operation, Treasury & Accounts Head: Branch Coordination & Control

2.3.9. Future plans and targets To achieve NRs. 451 crores of Deposit and NRs. 384 crores of lending target. To earn NRs. 7.5 crores of net profit after tax in current fiscal year. To increase capital base by issuing bonus or right shares in accordance with Nepal Rastra Banks directives in order to reach the level of NRs. 64 crores within 2069/70. To open at least two branches in each fiscal year. To give continuity to promoting of youth entrepreneurship through NYBF.

To give continuity to contributing in Youth & Small Enterprises Self Employment Program.

2.3.10. NDEP network The corporate office of NDEP Development Bank is situated in NDEP Building, 125 Bina Marg, Laldurbar (Kathmandu). Its branch offices are at Kamaladi, Dhulikhel, Koteshwor, Kandaghari, Chabahil, Tangal (Lalitpur), Panchkhal, New Road, Kunta, Banepa, Malekhu, Kushma, Battar, Bhaktapur, Balaju, Baneshwor, Kholesimal, Melamchi, Majhuwa Bazar, Dharke, Jalbire and Narayangadh. (Appendix)

2.3.11. Departments of the Bank There are various department s of NDEP bank and they are: Customer Service Department Cash and Remittance Department System and Card Department Credit Department Account and Human Resource Department Administration Department

2.4. Products and services offered by NDEP development bank

2.4.1. Deposit Products 1. Current Account 2. Saving Account Basic Saving Shareholders Saving Karmachari Uddhyami Saving Money Multiplier Saving NDEP High Yield Saving NDEP Naari Bachat Khata

NDEP Balbalika Bachat Khata NDEP Naulo Saving

3. Fixed Account Normal Fixed NDEP Fixed Plus NDEP Money Back Fixed NDEP Naulo Fixed

4. Recurring Deposit 5. Salary Management Account 6. Call Deposit 7. Structured Deposit

2.4.2. Loan Products 1. Consumer / Retail Loan Home Loan Vehicle Loan-Personal Use Vehicle Loan-Commercial Use Education Loan Mortgage Personal Loan Loan Against Shares & Debentures Loan Against Gold & Silver Loan Against Fixed & Recurring Deposit Receipt Loan Against Government Securities

2. Business Loan Overdraft Loan Short Term Loan Medium & Long Term Loan Project Loan Bridge Gap Loan Consortium Loan

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Small & Medium Entrepreneur Loan

3. Micro Loan Agriculture Loan Deprive Sector Loan

2.4.3. Services 1. ATM/ Debit Card NDEP ATM Service Locations: Kamaladi Complex, Kamaladi, Kathmandu Awal House, Koteshwor, Kathmandu Tangal, Lalitpur Ganesh Bazar, Banepa, Kavrepalanchowk Malekhu Bazar, Malekhu, Dhading Old Baneshwor, Bhimsengola, Kathmandu Dudhpati, Bhaktapur Dharmapath, Newroad, Kathmand

2. Safe Deposit Lockers Safe Deposit Locker services are available at: Kamaladi Main Branch, Kathmandu. Tangal Branch, Lalitpur.

3. Foreign Currency Transaction Foreign Currency Deposits Foreign Currency Cash Purchase and sale Draft Issuance Inward / Outward Remittance SWIFT / Telegraphic Transfer Cross Currency Transaction

4. Travelers Cheque Issue and Purchase 5. Remittance Inward Remittance:

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Western Union Money Transfer International Money Express (IME) Himal Remit Prabhu Money Transfer Union Money Transfer

Domestic Remittance (Send and Receive): Mega Remit Reliable Remit Nabil Remit Everest Remit

6. Interbank Transaction 7. SMS Mobile Banking 8. Life Insurance Premium Collection

2.5. Technology used by NDEP development bank

Technology has played a major role in providing valued services to the customers of NDEP development bank. NDEP development bank has used Bank Plus software which enables it to provide services like tele banking, point of sale services, ATM facilities, SWIFT facilities and ABBS banking system. Moreover, the bank provides SMS banking services which facilitates the customers to check total balances, statement up to four transactions, overdue date, maturity date and enquiry the current exchange rate through their mobile phones.

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CHAPTER THREE INTERNSHIP EXPERIENCE

3.1. Overview of internship experience
In order to fulfill the requirement of internship program, the internee worked for a period of six weeks equally allocated in various departments of NDEP development bank. This means that the internee worked one week per department of the bank during the internship period. The departments in which the internee worked was card department, cash and remittance department, customer service department, credit department, accounts and treasury department and administration department.

3.2. Activities performed by various departments of NDEP development bank

3.2.1. Card department The card department is mainly concerned with the transaction or activities related to the ATM card. The major activities of the card department can be listed as follows: Issuance of new ATM cards. Delivery of card and pin. On receipt of customers report on Lost/Stolen Card, the card department updates the status of the card as inactive and requests SCT to block the card. On receipt of application for re-issue of card in case of damaged card, the card department destroys the card in front of the customer and follows the procedures of issuance of new card. Regeneration of new pin if the customer forgets his/ her pin number. Handles the retained cards Replenishes cash in the ATM every day before and after the transaction hour in assistance with the head of the cash and remittance department. Prepare reconciliation the ATM cash transaction.

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Make settlement entry upon the receipt of settlement advise from Himalayan bank. Prepare a Blank Card Logbook as per pre-numbered blank cards procured by the bank and act as a card custodian. Dispose the uncollected cards and pins if the retention period of 3 month is reached. Follow the procedures stated in the banks standard operating procedures guidelines for any of the above mentioned activities.

3.2.2. Cash and remittance department The cash and remittance department of the bank is that department which deals with the customers more frequently than any other departments. Its main service to the customers are accepting the deposit and making withdrawal from the customers account upon their request. In other words, its primary functions are money transfers; comprising of outflow of funds (through debit of customer account or otherwise); and Inflow of funds (through credit of customer account or otherwise). Cash and remittance department has been divided into front office and back office. Front office is primarily responsible for dealing with the customers coming at the teller counters for cash withdrawal and deposit and sale and purchase of foreign currency. Bank purchases foreign currencies in the form of cash or travelers cheques from: Tourists exchanging foreign currencies for local currency. Hotel, travel/trekking agencies for deposit to their accounts maintained with the bank. Nepalese citizen surrendering leftover foreign currencies from foreign travel.

In addition, foreign currencies are sold as per Nepal Rastra Bank regulation in the form of cash and/or travelers cheque against Passport facility and foreign exchange permit issued by NRB. The bank sells foreign currency in the form of cash or travelers cheques only in following circumstances:

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To a bona-fide traveller either maintains a deposit account with the bank or deposits equivalent cash at the counter. To persons going abroad (other than to India) on private visit, students studying abroad and returning after vacation and other official visits. To persons holding foreign exchange permit issued by NRB.

In the back office, the employees facilitates the requests offront office during the customer service hours. The request may be for banking activities such as cheque clearing transactions, cheque collection, cheque discounting, inward remittance, transfer payable, bank draft, outward remittance, stop payment, standing instructions, dormant accounts, internal transfer, good for payment, fixed deposit, national saving bond and pay order. Cash and remittance department should strictly follow the general rules mentioned in the standard operating procedures such as rules related to the authority limit, obtaining identification of payee, confirmation of transaction above NPR 500000, operation on dormant account, sale and purchase of foreign currency, remittance, interest and so on.

3.2.3. Customer service department (CSD) The customer service department of NDEP development focuses on maintaining good and continuing relationship with the customers. It aims at solving any queries that customer may have and also help the customer by providing assistance in carrying out any transaction. The major activities of this department can be listed as follows: Opening of accounts according to the requirement of the customer If a change in customers address takes place, and such changes shall be notified by the customer and the designated staff of CSD updates the record.

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A customer shall change his/ her signature due to reasons such as changes in writing habit, ownership or any of the valid reasons. CSD must update the signature record of the respective customer

Issuance of new cheque book to the new customer or re-issuance of cheque book to the existing customer in cases such as loss of previously issued cheque book and submission of requisition slip from the previously issued cheque book.

Issuance of statement of accounts produced from the banks system as instructed by the clients and being delivered to them according to their preferred mode i.e. delivery by post or collect from the counter.

Upon the receipt of request from the customer for closing of accounts, CSD should follow the mentioned procedures in the banks standard operating procedures guidelines.

However, account closure is initiated either by NDEP or by the customer: In case of account closure at NDEPs initiation, a reasonable notice to this effect should be served to the client giving reason thereof. If account closure is at clients request, the client should state so in writing. Withdrawal of whole of the credit balance in the account should not be treated as closure of an account unless the client states in writing that the withdrawal is in fact for closing of account.

3.2.4. Credit department NDEP development bank provides variety of loan to the customers such as home loan, vehicle loan, mortgage loan, overdraft loan, loan against shares and debenture, loan against gold, project loan, bridge gap loan, consortium loan and so on. In order to properly manage these loan portfolio, NDEP development bank has credit department which is further sub-divided into three departments. They are credit marketing department, credit administration department and credit recovery department. Each sub departments have specific jobs to be done. Credit marketing department performs presanction appraisal of the proposed loan and prepares the loan proposal for the approval by the higher authority. Moreover, it uses liquidity and solvency ratios, activity ratios,

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capital adequacy ratios, debt serving capacity and profitability ratios to draw a conclusion on borrowers financial condition prior to the approval of the loan. Credit administration department deals with all the legal documentation of the loan. And credit recovery department aims at recovering the credit provided to the customer on timely basis and also keeps track of the customers. There are various procedures that must be followed by the credit department for sanctioning the credit and the procedures may differ for different types of loan. However, as a general policy, credit shall be granted against the security of assets, the market value of which shall not, at any time, be less than the amount of such loans and advances, and which can be enforced and adjusted against the loan amount in case of default by the borrower after giving proper notice. There are various documents that must be properly prepared and managed by the credit administration department for a complete loan documentation. They are loan application, form and photo, citizenship, source of income, lal purja, malpot tax clearance certificate, char killa (four boundary certificate), blue print, naksha pass certificate, cost estimation, financial statement, valid tax clearance certificate, valid frim / company registration certificate, MOA and AOM, board minutes, quotation of the vehicles, blue book, CIB report, valuation, site visit report, credit scoring card, proposal, offer letter, demand promissory note, letter of set- off, load deed document, title documents/ mortgage deed/ rokha letter, rajinama document, corporate guarantee, personal guarantee, family concent, family details, net worth statement, NRB details, insurance policy and signed EMI(PMT).

3.2.5. Accounts and treasury department In the simplest form, the accounts and treasury department is concerned with maintaining the proper books of accounts and ensuring that the all the transactions are recorded as per the relevant accounting policies and standard adopted by the bank. More specifically, some the activities of this department can be detailed out as follows: Ensuring that the accounting policies are consistently applied in the bank.

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Follow the procedures for recording foreign currency transaction stated in the standard operating procedures of the bank. Establish and implement controls necessary to protect the assets of the bank, and record assets in compliance with generally accepted accounting principles. Maintain loan loss provision in accordance with the prudential norms prescribed by Nepal Rastra Bank which follows:

Table 1.4: Loan loss provision Loan Category Pass Sub-standard Doubtful Bad Up to 3 months Above 3 months & up to 6 months Above 6 months & up to One year Above One year Overdue Period Loan Loan

Provisioning Rate 1 percent 25 percent 50 percent 100 percent

Maintaining appropriate income tax provision. Follow stated procedures for the accounting of non banking assets, non capitalized assets, contingent liabilities and staff benefit.

3.2.6. Administration department Administration department of the bank is tasked with providing administrative and logistical support to the entire bank. Its main functions include:

General office management and running. Transport management. Registry management. Assets management.

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Property management. Security and safety.

General office management and running provides services, which includes:

Provision of offices for all staff. Provision of all office equipment for use by staff e.g. Computers. Ensuring a clean and secure office environment. Ensuring availability of adequate lighting, water, telecommunication, email, fax, computers etc.

Providing, where possible, designated parking for vehicles. Ensuring availability of stationery Ensuring availability of adequate photocopying services/facilities. Setting of internal operating rules.

Transport Management includes:

Every staff is supposed to be provided with transport in the discharge of his/her official duties.

It provides fuel for all vehicles, ferries, motorcycles, plant and equipment. It is in charge of repairing and Maintenance of all vehicles, trucks and motor cycles.

Registry management includes: All incoming and outgoing mails must go through the registry. The registry must have in place good and efficient record filing and trucking systems for all the records i.e. all mail must be recorded in a mail book, filed and the file sent to the addressee for action. The registry shall maintain a file movement book for tracking all station files. Assets management includes:

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Acquisition of assets Management of assets (engraving, locating, checking/counting etc) Recommending disposal of assets

Property management includes:

Management of all the property of includes buildings installations e.g quarry sites, land etc.

Security and safety includes:

Security should be for all assets and property. Users must ensure safety of assets in their possession. Security shall be provided through hiring of a reputable firm.

3.3. Internship activities in NDEP development bank

3.3.1. Card department Under the supervision and guidance of the card department staff, the internee performed the following activities in this department. Filing the record of daily transaction related to ATM card in the respective branch office file. Under the assistance of card department staff, calculated the various charged that is to be credited or debited to the respective branch office account and the amount that is to be paid or recovered from the Himalayan bank for every banks ATM card transaction. Gained an understanding about various charges related to financial and non financial transaction conducted through ATM. Such charges are as follows:

For interbank transaction: payable amount is NPR 2.55 per transaction for
balance enquiry and NPR 22 per transaction for financial transaction.

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Receivable amount is NPR 8 per transaction for financial transaction and NPR 0.75 per transaction for other transactions.

Amount payable to SCT for each transaction carried out through banks
own ATM is NPR 2 per transaction. Learned the procedures to be followed when delivering the pins to the customer and also when sending the pin to the branch offices through courier or through trusted individual. Reconciled the ATM journal with the details of the transaction recorded by the system itself.

3.3.2. Cash and remittance department The activities involving cash in a bank involves high risk as any imbalance in the account may create problems for the bank and the respective staff involved may have to compensate from his/ her own fund to settle the imbalance. This is the reason why the internee was not allowed to do any work in the system. But as a part of the internship program, the internee was allowed to observe the various functions performed in that particular department as well as was asked to go through the system operating procedure (SOP) of CRD. Under the guidance of the CRD staff, during the period of one week, the internee performed activities as follows: Gained a good understanding of different types of cheques (Bearer cheque, account payee cheque, & co cheque and Cross cheque) and its characteristics. Gained concept regarding the good for payment cheque. Learned the procedures that should be followed when an individual presents cheque issued by the banks customer and when the banks customer brings the cheque of another bank or the banks itself for deposit. Learned the procedures that should be followed when receiving cash for deposit. Learned what should be done by the department if any call received or standing instruction from the account holder or from authorized person prior to the presentation of the cheque. Gained knowledge about procedures involved in inward and outward remittance.

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Actions that should be taken after receiving the stop payment order from the client. Learned how the journal vouchers were passed for every transactions carried out in CRD.

3.3.3. Customer service department In the CSD, during the internship period, under the guidance of the CSD staff the internee performed the following activities: Assist the customers in filling up the various forms like account opening form, SMS banking form and ATM card application form. Provided knowledge to the customers regarding the various deposit products and services available in the bank as well as helping the customers by referring them to persons who can help them with their problems. Assist staffs in signature scanning, filing of the account opening file and closing file, preparation of cheque book, recording of the issued cheque book and recording statement issue. Verification of the signature of the customer who come to collect their ATM cards and recording the delivery of the card in the register under the supervision and authority of the concerned staff.

3.3.4. Credit department In the credit department, the internee was basically assigned to study various documents related to the credit facilities offered by the bank. In detail, such activities can be listed as follows: Gained an understanding about the loan proposal related to overdraft loan, mortgage loan and so on. Also the factors to be considered before finalising the proposal were thoroughly explained by the credit department staff to the internee. The internee was given an opportunity to study the loan proposal.

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Learned the differences between bid bond and performance bond and the reasons for bank providing such bond to the customers. Moreover, a sample of each type of bond was given by the concerned staff to the internee for studying.

Learned how the various financial ratios were applied by the credit department in assessing the financial position of the proposed borrower and determining the repayment capability.

Studied the various legal documents need for providing the credit facility to the customers. Labelled various types of loan files which involved including details about the loan on the front of respective file as per the NRB directive.

3.3.5. Accounts and treasury department Under the supervision of accounts and treasury department staff, the internee was assigned to study the standard operating procedures of the department and was given a brief knowledge about the accounting standard applicable and general accounting entries for the activities of the bank.

3.3.6. Administration department In the administration department, the internee performed the activity related to fixed asset management which involved physical verification of the status of the fixed assets in the corporate office, recording the number and details of fixed assets available, classified the fixed assets as per the departments in corporate office and finally coded the fixed assets and details provided to the administration department head.

3.4. Internship achievements

The most important lesson that the internee has learnt during the internship period is the understanding of corporate working environment, which is the basic lesson for the internees career development. Besides this, internee also has learnt the working of the general banking transaction process by being engaged as intern in most of the departments of NDEP development bank.

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During the internship period, the factor that was felt most important by internee was the importance of the time management and the need of the communication skills. Such management and communication skill of the internee was enhanced through the internship program as internee was constantly required to efficiently allocate time between college and office. And moreover since internee was given an opportunity to communicate with the customer of the bank as well as the working staffs, the communication skill was thus effectively enhanced.

3.5. Discussion and evaluation

The initial objective of the internship program was to broaden the understanding of banking activities, link the various financial and accounting concepts and theories learnt with the standard operating procedures of various functional departments and understand how day to day activities and transactions are properly managed by the authority in charge leading to smooth function of every department in a bank. These internship objectives of the internee were gradually fulfilled as the internship program progressed. The internee gained sufficient understanding of the working of the bank by engaging in different department. And in the context of linking the financial and accounting concept learned in college courses, the internee was effectively able to determine the various financial concept used while working in the credit department of the bank. In addition, all the accounting concepts that were studied in financial accounting subject in second and third semester of Bachelor in Business Administration in Banking and Insurance program was practically observed by the internee in almost all the departments of the bank who were required to record their transaction but mostly was observed in the accounts department. And during the period of six weeks, the internee was able to analyze how the staffs in charge were managing the day to day activities of the bank thus fulfilling the final internship objective. The discussion and evaluation of the internship experience can be further supported by carrying out the SWOT analysis of the NDEP development bank by the internee which can be elaborated as follows.

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3.5.1. SWOT Analysis SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

Strengths are characteristics of the business, or project team that give it an advantage over others.

Weaknesses (or Limitations) are characteristics that place the team at a disadvantage relative to others.

Opportunities are external chances to improve performance (e.g. make greater profits) in the environment.

Threats are external elements in the environment that could cause trouble for the business or project.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOT analysis. The SWOT analysis for NDEP Development Bank is as follows:-

3.5.1.1. Strength Wide array of products and services offered The bank gives its first priority towards catering its service rather than making profit. It is directed towards providing quality service and increasing the customers satisfaction. Innovative ideas and products/services have been injected into the bank from time to time. This has made the bank unique and outstanding in the market. As there is the prevalence of the advance technology and the staffs are experienced as well as qualified the services catered by the bank is relatively faster than the other banks

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3.5.1.2. Weakness Less marketing activities and promotion of services offered by the bank. Delay in decision making. Rigid lending policies compared to other banks. Loan applicants have to fulfill strict rules of documentation, which increases lead time for final disbursement of loans. Due to this, customers may have negative perception regarding overall functioning of the bank. High recruitment and training cost.

3.5.1.3. Opportunities As the customers are loyal to the bank and is rich in technology, it has been able to expand its business by opening branch in various parts of the country. The bank has got opportunity to finance in various trading business by developing the existing credit facility. High potential of earning foreign currency by enhancing remittance services.

3.5.1.4. Threats Highly competitive industry Growing financial institutions which provide similar service as of banks to customers Political instability of the nation Unstable socio-economic condition in the country

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CHAPTER FOUR SUMMARY AND CONCLUSION

4.1. Summary
The internship report is submitted as per the requirement for the completion of the Bachelor in Business Administration in Banking and Insurance, which comprises of three critical credit hours. The main objective of the study is to help the intern expose his/her theoretical knowledge gained inside the classroom to the real working environment. NDEP Kamaladi (head office) was selected for the purpose of internship, which proved to be the perfect platform for the intern to simulate with the corporate world. There wasn't any hard and fast rule for the placement within the Kamaladi head office. Therefore intern was placed at customer service department, cash and remittance department, card department, credit department and was sent to the corporate office for placement at administration department and accounts and treasury department for six weeks of internship. During the internship period, different activities were performed according to department placement. The various activities performed by the internee in various departments were filing the record of daily transaction related to ATM card in the respective branch office file, calculated the various charged that is to be credited or debited to the respective branch office account and the amount that is to be paid or recovered from the Himalayan bank for every banks ATM card transaction, reconciled the ATM journal with the details of the transaction recorded by the system itself, gained a good understanding of different types of cheques (bearer cheque, account payee cheque, & co cheque, cross cheque and goods for payment cheque) and its characteristics, assisted the customers in filling up the various forms like account opening form, SMS banking form and ATM card application form, assisted staffs in signature scanning, filing of the account opening file and closing file, preparation of cheque book, recording of the issued cheque book and recording statement issue, verification of the signature of the customer, learned how the various financial ratios were applied by the credit department in assessing the financial position of the proposed borrower and determining the repayment capability, studied the various legal documents need for providing the credit

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facility to the customers, labelled various types of loan files which involved including details about the loan on the front of respective file as per the NRB directive, gained a good knowledge of the accounting system used in the bank and performed the activity related to fixed asset management.

4.2 Conclusion
Performing the various activities in all the major departments of NDEP for six weeks period has given the internee, an overall understanding of the operation of development bank. Thus, it can be concluded that the internship program has provided the students with an opportunity to explore and enhance their skills and enlarge their knowledge base leading to the better future prospects in the management field.

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